Posted To: Community Commentary
Fannie Mae announced a new refinance program “RefiNow”, effective June 5th , designed to provide greater loan flexibilities for low income borrowers, particularly those unable to refinance during 2020’s historically low interest rate environment. Here’s a link to that announcement . There’s been a LOT of advance hype about the program: how many homeowners it will help; how much they’ll save; etc, but as always, the devil is in the details. Let’s look at RefiNow’s pros and cons! Pro: RefiNow allows debt-to-income ratios of up to 65%, well above Fannie’s limit of 50% on other programs. Con: Borrowers obtaining RefiNow loans must have income under 80% of the Area Median Income (AMI). What’s the AMI where you live? You can look it up here…(read more)
Source: Mortgage News Daily
