by Kimberly Rotter | June 11, 2021
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Lower-income Fannie Mae borrowers can lower their monthly mortgage payment.
A new mortgage refinance program from Fannie Mae is designed to help lower-income borrowers refinance their home loan and improve housing affordability.
Fannie Mae says that lower-income borrowers refinance mortgages at a slower pace than other borrowers. That might be because of the cost to refinance or possibly because a refinance application is too much trouble. The RefiNow™ program helps simplify the process and lower costs.
The RefiNow™ program is a special refinance mortgage loan program that helps eligible borrowers get a lower rate on their mortgage and save money every month.
In addition to the borrower benefits, the refinance lender will get a financial incentive. Certain fees will be waived.
Here is what you need to know about who can take advantage of this money-saving refinance opportunity:
There are other limitations that your lender can tell you about. For example, you can't change the named borrowers and you can't get cash out.
Virtually all of the best mortgage lenders participate in this program. Any Fannie Mae approved lender can offer a RefiNow loan. Some, like New American Funding, are actively advertising it and helping borrowers find out if they are eligible.
Getting a mortgage involves a cost and a process. The price tag and complexities might inspire some borrowers to settle in and pass up opportunities to save money by refinancing. Inertia is a powerful force.
Fannie Mae is helping to remove some of those obstacles by absorbing costs and streamlining the process. This program is for helping regular people keep more money in their pocket. The application criteria are generous, and the savings are real.
This opportunity should come as a welcome surprise to deserving homeowners who've been paying down their mortgage and could use a little more room in the monthly budget. The money saved on the mortgage payment could then be used to pay down debt, tackle home maintenance, or reach some other financial goal.
Chances are, interest rates won't stay put at multi-decade lows for much longer. That's why taking action today is crucial, whether you're wanting to refinance and cut your mortgage payment or you're ready to pull the trigger on a new home purchase.
The Ascent's in-house mortgages expert recommends this company to find a low rate - and in fact he used them himself to refi (twice!). Click here to learn more and see your rate. While it doesn't influence our opinions of products, we do receive compensation from partners whose offers appear here. We're on your side, always. See The Ascent's full advertiser disclosure here.
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