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Fannie Mae's New Refinance Option Available Beginning June 5, 2021

RefiNow™ Expands Eligibility to Help More Homeowners Reduce Their Monthly Mortgage Payment
(Applicable for Wholesale channel)



Dear Licensed Partner,

On May 5 2021, Fannie Mae via Lender Letter 2021-10 introduced the RefiNow™ option to enable borrowers to refinance to a lower rate and reduce their monthly mortgage payment. With this program option qualifying homeowners whose earnings are no more that 80% of the Area Median Income (AMI) will be eligible to refinance their Fannie Mae-owned loans to a lower interest rate and a corresponding lower monthly mortgage payment.

The RefiNow™ program option will be available beginning June 5, 2021.

Sun West Mortgage Company, Inc. is offering RefiNow™ loan program with an application date on or after June 5, 2021.


RefiNow™ helps the borrower by:

  • Requiring a reduction in the homeowner's interest rate by a minimum of 0.5 percent and a savings of at least $50 in the homeowner's monthly principal and interest payment.
  • Providing a $500 credit from Fannie Mae to the lender at the time the loan is purchased if an appraisal was obtained for the transaction. The lender must pass this credit to the homeowner.
  • Waiving the 50-basis point up-front adverse market refinance fee that Fannie Mae otherwise charges to lenders on balances at or below $300,000.

To qualify for RefiNow™, the borrower must have:

  • a Fannie Mae-backed mortgage secured by a 1-unit, principal residence;
  • a current qualifying income at or below 80% of the Area Median Income (AMI);
  • not missed a mortgage payment in the past six months, and have no more than one missed mortgage payment in the past 12 months; and
  • a mortgage with a loan-to-value ratio up to 97%, a debt-to-income ratio of 65% or less, and a minimum FICO score of 620.

If you have any questions, please contact your Client Relations Manager at (855) AT-SUNWEST or (855) 287-8693.


Sincerely,

Sun West Mortgage Company, Inc.

6131 Orangethorpe Avenue, Suite 500
Buena Park, CA 90620
Phone: (800) 453-7884



SW-1: Our No Overlays Program

This information is provided to licensed mortgage professionals only and not for distribution to consumers. Please visit https://www.swmc.com/disclaimer.php or refer to www.nmlsconsumeraccess.org to see where Sun West Mortgage Company, Inc. (NMLS ID 3277) is a licensed lender and servicer. All Rights Reserved. We are not accepting applications from Georgia or Massachusetts residents. We are purchasing mortgages secured by Massachusetts properties but not Georgia. Sun West Mortgage Company, Inc. (NMLS ID 3277) holds a Financing Law License (#6030119) [Loans made or arranged pursuant to a California Financing Law license], licensed by the California Department of Business Oversight, Phone: (866) ASK-CORP and has a DRE Real Estate Corporation License Endorsement (#00793885), licensed by the California Department of Real Estate, Phone: (877) 373-4542.

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