Mortgage Refinancing Options

With RefiNow^TM , eligible borrowers with Fannie Mae-owned loans may take advantage of benefits like:

• A lower interest rate
• Reduced monthly payments
• Savings on up-front and out-of-pocket appraisal expenses

Talk to your lender or find a participating lender in your area who can help determine if RefiNow is right for you.

HomeReady^® has a limited cash-out refinance option designed to meet the diverse financial needs of borrowers. Refinancing with a HomeReady mortgage addresses common financial challenges:

• 3% equity option. If you already have a Fannie Mae-owned loan, you can refinance with as little as 3% equity. If your mortgage isn’t owned by Fannie Mae, you can refinance with as little as 5% equity.
• Co-borrower flexibility. Not all borrowers have to reside at the property. For example, parents who won’t be living in the home can be co-borrowers on the loan to help their children qualify for a mortgage and purchase a home. Income limits may apply. 
• Additional income sources. Rental payments (e.g., from a basement apartment) may be considered as another allowable income source to help qualify a buyer.

When you refinance a home with a HomeStyle^® Renovation loan, you can finance improvements for up to 75% of the property’s as-completed value — that’s the appraised value of the home once the upgrades are in place.

This type of refinancing can be a more cost-effective way to renovate your home because it combines the cost of the home and renovations into a single conventional mortgage with one monthly payment. It also addresses common financial challenges with renovating a home by offering:

• Solutions for out-of-pocket costs. You can benefit from upfront draws, which could help you avoid paying initial costs for contractors and architect fees out of pocket.
• Simple payment solutions. Renovation funds get bundled into your mortgage under one loan, so you only make one monthly payment.
• Endless renovation possibilities. HomeStyle Renovation can be used for any renovation project, such as updates to an older home, extensive design improvements, and even construction or renovation of additional living spaces like in-law suites and basement apartments.

When you use a HomeStyle Energy limited cash-out refinance, you can finance improvements for up to 15% of your home’s as-completed value. This means refinancing your current home loan into a new mortgage to access the equity in your home and using it to pay for new energy improvements.

You can use the loan to make value-adding upgrades to your home, which can help:

• Boost energy efficiency. Think about replacing a water heater with a more energy-efficient system.
• Save on utility costs. Upgrades could include resealing or replacing air ducts or adding new insulation.
• Repair or prevent damage from disasters. Enhancements could look like new storm surge and window barriers or landscaping to prevent wildfire from spreading.

You can also use a HomeStyle Energy refinance to pay off previously made improvements that were financed with a home equity line of credit, credit cards, or a Property Assessed Clean Energy (PACE) lien.