Fannie Mae RefiNow Mortgage

A man holding a sign that says, “refinance your mortgage”Refinancing your mortgage through Fannie Mae's RefiNow program can lead to significant savings in the form of reduced mortgage payments and interest rates. Educating yourself on the RefiNow program's specifics is crucial to ensure a smooth and successful process. This article will offer an overview of RefiNow and provide tips for maximizing your savings through refinancing.

Introducing the Fannie Mae RefiNow Mortgage

The Fannie Mae RefiNow Mortgage is an excellent refinance option for homeowners or borrowers looking to lower their mortgage payments. It offers a new opportunity to make refinancing possible even if the homeowner does not meet traditional criteria.

The RefiNow program considers local area median income and other factors such as the borrower’s credit history and current interest rate. It also allows homeowners to look at different types of mortgages to find one that best suits their needs. This makes it easier to decide if a refi is right for them. With Fannie Mae backing the program, homeowners can be sure they are getting a great deal on their mortgage while helping support two of the most trusted names in mortgages.

Benefits of the Fannie Mae RefiNow Mortgage

There are numerous benefits to having lower rates and costs when managing finances. Besides the obvious benefit of saving money, a person can have more financial freedom and greater control over their budget. For some individuals, lower rates and costs can mean making larger purchases or investments that they might not have been able to do before. 

Lowering the debt cost is another advantage of having lower rates and fees. The interest rate will be less, as will the amount owed overall due to fewer finance charges. This is especially beneficial for those who need to take out large sums of money for emergencies or other significant expenses. Furthermore, lowering rates can also help reduce monthly payments, opening up more room in an individual’s budget for other expenditures, such as food or entertainment.

Eligibility Requirements for the Fannie Mae RefiNow Mortgage

Homeowners seeking to refinance their existing mortgages may find Fannie Mae's RefiNow mortgage a fantastic option. To qualify, borrowers must hold a Fannie Mae mortgage, prove their homeowner status, and demonstrate low-income quality. 

Lenders assist eligible borrowers in securing the best deal by utilizing the RefiNow program to offer competitive interest rates, lower monthly payments, and even new refinance options.

The Federal Housing Finance Agency (FHFA) has established stringent eligibility criteria to guarantee that borrowers have access to affordable and advantageous refinancing through the RefiNow program. This program allows homeowners to decrease their mortgage payments and make their housing more affordable.

Do You Qualify for a Refinow Mortgage?

Step 1 – Only homeowners whose existing mortgage is held by Fannie Mae are eligible for the RefiNow mortgage. You may utilize the lookup tool to see if Fannie Mae owns your mortgage. Use the Freddie Mac search tool below to see if Freddie Mac owns your mortgage if Fannie Mae does not hold it.

Step 2 -  Refinow is only available to borrowers whose income is 100% of the area median income (AMI) or less. This program is not available to Bill Gates or Jeff Bezos. Only low and moderate-income homeowners are eligible for the RefiNow mortgage. Does your (gross) annual income meet the 80% threshold? Use the Fannie Mae income lookup tool to see if you meet the income guideline.

Additional Guidelines for a Fannie Mae RefiNow Mortgage

If you pass steps one and two, we'll move on to additional RefiNow refinance mortgage program requirements.

  • Single-family owner-occupied primary residences only. Two, three, and four-unit properties are ineligible.
  • No investment properties or second houses are permitted.
  • Borrowers' current income must be less than or equal to 100% of the subject property's area median income (AMI).
  • As of the new note date, the current loan must be 12 months old but no more than 120 months old.

Housing payment history for existing mortgage

  • No missed mortgage payments on their current mortgage loan in the past six months, and no more than one missed
    payment in the past 12 months

COVID-19 forbearance can cause people to miss payments, but if those payments were resolved by LL-2021-03, they don't count as missed payments for meeting these payment history requirements. 

  • Maximum LTV/CLTV of 97 percent. This means that after paying off the current loan (plus any additional loans, if necessary), there must be at least 3% equity remaining after adding in closing and prepayment expenses.
  • Debt to income ratio, up to 65%. Debt to income is the lender's lingo for determining the ratio of monthly debt (i.e., car payments, credit cards, student loans) and comparing it to monthly income. For example, if a borrower earns $2,000 (gross) and pays out $1,000 monthly, the debt-to-income ratio is 50%. Simply add up your monthly loan payments and divide the monthly income into the monthly debt payments. ($1,000/$2,000 = 50%)
  • A minimum credit score of 620

The RefiNow Mortgage Must Provide the Following Benefits:

  • The monthly payment must be lowered by at least $50.00
  • The new interest rate must be cut by at least 1/2%.
  • If an appraisal is obtained, a $500 credit will be issued at closing.
  • The refinancing must be approved by automated underwriting.
    Automated underwriting is computer software that assists lenders in determining whether or not to accept an application.

With the exclusions listed below, condo, co-op, and PUD developments do not need a project review.

  • Confirm that the project is not a condo or co-op hotel, a motel, a houseboat, a timeshare, or a project with segmented ownership.
  • Confirm that you have enough property and flood insurance.

Standard mortgage insurance is needed on all loans with a loan-to-value ratio above 80%. Monthly mortgage insurance is required if the equity is less than 20%.

Refi Possible by Freddie Mac

Freddie Mac, the Federal Home Loan Mortgage Corporation, provides the Refi Possible mortgage. Fannie Mae and Freddie Mac compete, yet their approval guidelines are alike, and Freddie Mac mirrors Fannie Mae's guidelines for Refi Possible.

Does Freddie Mac own your mortgage? Use the Freddie Mac lookup tool.


The RefiNow mortgage program offered by Fannie Mae is the easiest way to get a lower interest rate on your mortgage. With just a few clicks, you can see if you qualify for a lower interest rate and potentially save thousands of dollars over the life of your loan. So what are you waiting for? Try RefiNow today!

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