Fannie Mae Fixed Rate Programs

Fixed rate mortgage programs can be used for home purchase or refinance and are one of the most popular mortgage products on the market today.

  • Fixed interest rate for the term of the mortgage
  • 15, 30, & 40 year terms

Fannie Mae Adjustable Rate Mortgages (ARMS)

ARMS (Adjustable Rate Mortgages) provide homeowners a lower upfront payment and when it adjusts, if the current rates are lower, they would not have to refinance. However if the rates are higher when the mortgage adjusts the payment would increase. Typically these mortgages are for people who do not plan on staying in the home more than a few years.

3/1,  5/1,  7/1,  & 10/1 ARMS

  • Are either 30 or 40 year mortgages and provide a fixed rate for the first 3, 5, 7 or 10 years.
  • The mortgage adjusts to current markets rates annually.

Convertible ARMS

Is a feature that allows you to convert after the adjustment period in to a fixed rate with having to refinance.

Conventional Energy Efficient Mortgages

The Fannie Mae loan also adjusts the value of the home to reflect the value of the energy efficiency measures. There is no maximum income to expense ratio for an EEM, however all mortgages are subject to a maximum debt to income ration of 45%.

HARP Mortgage Program

If your home value has fallen while your mortgage payments have increased, and Fannie Mae or Freddie Mac owns or guarantees your mortgage, the government’s Making Home Affordable program may have a refinance option for you. It’s called the Home Affordable Refinance Program (HARP).