RefiNOW

Take advantage of RefiNOWTM to help more homeowners reduce their monthly mortgage payment.

The new Fannie Mae® RefiNowTM program offers expanded eligibility for homeowners to refinance a loan, that is owned or securitized by Fannie Mae, at a lower rate and reduced monthly payment. 

The new RefiNow loan must:

  • Be a fixed-rate loan.
  • Have maximum LTV, CLTV, and HCLTV ratios as permitted in the Eligibility Matrix.
  • Be a limited cash-out refinance with cash out less than or equal to $250. Excess proceeds may be applied as a curtailment on the new loan.
  • Have a loan limit that conforms to the general loan limits (high-balance loans are not permitted).
  • Have identical borrowers on the new loan as the existing loan. New borrowers cannot be added or removed. One or more borrowers may only be removed if:
    • The remaining borrower(s) meet the payment history requirements and provides evidence that they have made at least the last 12 months of payments from their own funds, or
    • Due to the death of a borrower (evidence of the deceased borrower’s death must be documented in the loan file).
    • Note: Non-occupant borrowers are permitted (see below).
  • Not be a Texas Section 50(a)(6) loan.
  • Not be subject to a temporary interest rate buydown.

Note: A RefiNow loan may not be combined with a HomeReady® refinance transaction

The refinanced loan must provide the following benefits to the borrower:

  • A reduction in the interest rate of at least 50 basis points, and
  • A reduction in the monthly payment that includes principal, interest, and mortgage insurance payment (if applicable).

Underwriting and Documentation Requirements for the New Loan

  • Loans may be underwritten with DU. DU will automate the identification of loan casefiles that appear to be eligible for RefiNow based on the borrowers listed on the loan application, the property address, qualifying income, and several other factors. Refer to the Release Notes for additional information.
  • Manual underwriting may be used if the loan is otherwise eligible for manual underwriting. Manually underwritten loans:
    • Are only required to comply with the maximum LTV, CLTV, HCLTV ratios listed on the Eligibility Matrix and as otherwise stated within this document.
    • May follow the DTI ratio and credit score requirements below. There are no required minimum reserves.