Action Realty
Trusted | Respected | Connected
(772) 581-8814
  • Email
  • Facebook
  • Instagram
  • Pinterest
  • Tumblr
  • Twitter
  • YouTube
  • Home
  • Search
    • Search All Listings
    • Search by Map
    • Featured Listings
    • New Listing Notifications
    • User Login
  • Neighborhoods
  • Buyers & Sellers
    • What’s My Home Worth
  • Blog
  • About
    • About Us
    • Testimonials
  • Contact
Home > Fannie’s Aggressive ReFiNOW Program

Fannie’s Aggressive ReFiNOW Program

June 26, 2021 by oangelone Leave a Comment

A winner for those having difficulty refinancing at today’s low interest rates due to insufficient earnings.

PROS (Several)

  • Debt-to-Income (DTI) Ratio can be as high as 65% – Example Below (if you like math)
  • $500 Appraisal Fee Credit
  • Waiver of FHFA’s 0.50% refinance fee
  • Up to 97% Loan-To-Value
  • Allows one late mortgage payment in 12 months
  • 620 minimum credit score

CONS (Few)

  • Qualifying Income must be less than 80% of County Area Median Income ($62,080 in IRC)
  • Rate & Term Refinance only (no Cash-Out)
  • Existing Loan must be owned by Fannie Mae

Key Requirements:

  1. Must be a 1-unit primary residence
  2. Interest rate must improve by at least one half of 1.0%
  3. Monthly mortgage payment must reduce by at least $50

Here’s the point according to Mike Kanuka, Founder and President of Ocean Mortgage Capital, “Fannie Mae just made it much easier to refinance a primary residence mortgage, especially for those whose earnings have reduced because of COVID”.

Women holding calculator

EXAMPLE:

Assume…

  • Existing $200,000 30-year fixed rate mortgage at 4.25% ($1,400/month mortgage payment)
  • $450 of other monthly obligations (auto/student loans, credit cards)
  • $50,000 of household income yielded a DTI of 45%*:

DTI = ($1,400 + $450) monthly obligations DIVIDED BY: $4,167 monthly income ($50,000/12) = 45%

* Rule of Thumb: DTI should not be greater than 45%

However…

  • Income reduces by 20% to $40,000
  • Credit score permits a 3.25% refinance ($1,287 monthly mortgage payment) – BUT:
  • Loan App declined because DTI is now 52%:

DTI = ($1,287 + $450) monthly obligations DIVIDED BY: $3,333 monthly income ($40,000/12) = 52%

Today with Fannie RefiNow…

  • Pre-qualified for a rate reduction from 4.25% to 3.25%
  • Income could actually reduce to $32,000 (by 36%) and DTI would still qualify at 65%:

DTI = ($1,287 + $450) monthly obligations DIVIDED BY: $2,666 monthly income ($32,000/12) = 65%

This may be the perfect time to refinance! Take a look at your numbers and talk to an expert. 

Filed Under: Uncategorized

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

New Listing Notifications
What's My
Home Worth

Categories

  • Buyers
  • DIY & Renovations
  • Outdoor
  • Real Estate News
  • Rental
  • Sellers
  • Treasure Coast Local
  • Uncategorized

Search Properties

$
$

Action Realty, LLC

709 Washington St.
Sebastian, FL 32958

(772) 581-8814
Contact Action Realty

Why Choose Action Realty?

If you are looking to buy or sell real estate, it's best to be well informed and work with a professional with the experience you need. Our agents are here to help you through every step of the process, from finding the right home, staging, negotiations, and vendor management. We've got you covered.
Meet Our Team
  • Email
  • Facebook
  • Instagram
  • Pinterest
  • Tumblr
  • Twitter

sitemap   •   admin   •   ©2022 All Rights Reserved  •  Real Estate Website Design by IDXCentral.com