ReFi Now Removes Barriers for Lower-Income Borrowers

Refinancing is intimidating, especially for lower-income homeowners. There are eligibility requirements to meet and closing costs to pay. Many low-income borrowers pass up the opportunity to save money on their mortgage in favor of sticking with their familiar plan.

At MortgageDepot, we encourage our Pennsylvania clients to explore refinancing as a tool to save money monthly and in the long run. Programs exist that transform refinancing from a nerve-wracking experience to a seamless one for lower-income borrowers. Fannie Mae’s RefiNow program is a prime example.

What is the RefiNow Program?

Fannie Mae’s RefiNow program was introduced in late spring 2021 to remove the barriers of refinancing for lower-income borrowers. When a program that increases access to lower interest rates is available, borrowers can direct their extra funds to other financial goals.

RefiNow Eligibility Requirements

Does saving money on your mortgage sound like a good idea? Your next step is to determine if you qualify for the RefiNow program. Here is an overview of the eligibility requirements:

• Primary single-family residences or condos are eligible.
• Borrowers must have a minimum credit score of 620.
• The original loan must be between 12 months and ten years old.
• The borrower must have no missed mortgage payments over the most recent six months, and they must have no more than one missed payment over the past year.
• Current income must not exceed 80 percent of the average median income for the area.
• The debt-to-income ratio must not exceed 65 percent.
• A loan-to-value ratio of up to 97 percent is eligible, but mortgage insurance requirements apply over an LTV of 80 percent.
• Little to no extenuating circumstances apply, so contact MortgageDepot to determine your eligibility.

What’s In It for Me: RefiNow Program Benefits

Is it worth the time to meet with one of MortgageDepot’s loan officers and investigate the RefiNow program? We think so! Here are some of the benefits that qualified borrowers will experience:

• The new loan will decrease the borrower’s interest rate by at least 0.5 points and save the borrower at least $50 off their monthly mortgage payment.
• If an appraisal is needed, the borrower will receive a $500 credit at closing.
• The adverse market refinance fee usually applied to loan balances of up to $300,000 is waived.

Contact MortgageDepot Today!

MortgageDepot helps lower-income borrowers in Pennsylvania achieve their financial goals. Contact us today to see if you qualify for the RefiNow program!

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