Rate and Term
Basics
A Rate and term refinance does exactly what it states. You can use these loans to replace the length of your loan, the interest rate of your loan, or both. You can also receive up to $2,000 cash at closing.
Rate and Term refinances will have the same limits and ratios as standard purchase transactions.
The Fannie Mae Eligibility Guidelines
- 1 Unit Property - 95% (certain products can go to 97%)
- 2 Unit Property - 85%
- 3-4 Unit Property - 75%
The Freddie Mac Eligibility Guidelines
- 1 Unit Property - 95% (certain products can go to 97%)
- 2 Unit Property - 85%
- 3-4 Unit Property - 80%