Fannie Mae launches program to encourage refinancing

Fannie Mae launches program to encourage refinancing

Fannie Mae launches program to encourage refinancing
Mortgage giant Fannie Mae announced last week that it was launching RefiNow, a program aiming to help two million homeonwers in the U.S. refinancing their mortgage in to a lower rate. Eligible homeowners are those who earn 80 percent or less of their region’s median income and have a Fannie Mae-backed mortgage.

The Federal Housing Finance Agency estimates that homeowners could save from $100 to $250 per month by locking in a lower rate on their mortgage. However, lower income homeowners are often slower to refinance due to the complexities involved and the costs associated with the process. RefiNow is Fannie’s attempt at eliminating these barriers.

Other benefits offered by the program through particpating lenders include possible appraisal fee waivers, reduced interest rates and other lender expenses.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.