Mortgage Refinancing Options

Home mortgage refinancing can potentially lower your monthly payments by replacing your current mortgage with a new one that has more favorable loan terms. Refinancing may offer other benefits as well. After evaluating your financial goals, you can choose the type of refinancing that works best for your situation.

Types of refinance

Traditional refinance

If you want to make your payments more comfortable and your home value is steady or has increased, you may be able to refinance your mortgage. You’ll go through an application, approval, and closing process, like when you got your original mortgage.

Cash-out refinance

Some mortgages allow a “cash-out” refinance, so you can turn some of your home equity into cash or use it to pay off high-cost debt. The money you take out will be added to the total balance of your mortgage loan. This can reduce the amount of equity in your home, add to the length of time it will take you to pay off your mortgage, and ultimately, require you to pay more total interest. While there are situations in which this option makes sense, it’s something that you’ll want to consider carefully before moving forward.

Limited cash-out refinance

A limited cash-out refinance replaces your existing mortgage with a new one that can take advantage of better terms like lower interest rates. It also allows you to walk away from the transaction with up to $2,000 or 2% of the new mortgage loan balance - whichever is less. This can give you ready funds to make home improvements.

Refinance Refinancing Options

Should I refinance?

If you’re wondering if refinancing is right for you, read more about what to consider. Learn more

Review Fannie Mae refinance options

In addition to Fannie Mae’s standard mortgage refinance, we offer several options to help you make the most of your refinance. A mortgage lender can help you understand if one of these options is right for you.

RefiNow
Refinance for Fannie Mae loans

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

First, check if Fannie Mae purchased your mortgage

If your mortgage was purchased by Fannie Mae, you may be eligible for RefiNow. If you’re not, talk to a mortgage lender about the options available for you.

HomeReady
Limited cash-out refinance

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:

HomeStyle Renovation
Refinance for home improvements

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:

HomeStyle Energy
Refinance for energy upgrades

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:

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.