1You must pay a $250 fee each time that the no-refi rate-drop option is exercised. There is no limit on the number of times the no-refi rate-drop option can be exercised if all applicable criteria are met each time.
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2Payment examples:
A Military Choice loan of $300,000 for 30 years at 7.375% interest and 7.713% APR will have a monthly payment of $2,072. A Jumbo Military Choice loan of $800,000 for 30 years at 7.750% interest and 8.096% APR will have a monthly payment of $5,731. Taxes and insurance not included; therefore, the actual payment obligation will be greater. All loans subject to credit approval. Jumbo Military Choice loans are loan amounts above $766,550 up to $1,000,000.
A Homebuyers Choice loan of $300,000 for 30 years at 7.500% interest and 7.841% APR will have a monthly payment of $2,097. A Jumbo Homebuyers Choice loan of $800,000 for 30 years at 7.875% interest and 8.224% APR will have a monthly payment of $5,800. Taxes and insurance not included; therefore, the actual payment obligation will be greater. All loans subject to credit approval. Jumbo Homebuyers Choice loans are loan amounts above $766,550 up to $1,000,000.
A jumbo fixed loan of $800,000 for 30 years at 6.125% interest and 6.244% APR will have a monthly payment of $4,860. Taxes and insurance not included; therefore, the actual payment obligation will be greater. All loans subject to credit approval. Loans over a certain amount are called jumbo loans. In most states, mortgage loans greater than $766,550 are jumbo loans. In AK and HI, any loan over $1,149,826 is considered a jumbo loan.
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3To be eligible to exercise the no-refi rate-drop (rate reduction) option and receive a reduction to the interest rate on your loan, you must meet all of the following criteria:
(A) Your loan is one of the following fixed-rate mortgage loan products: Homebuyers Choice, Military Choice, or 15- or 30-year jumbo fixed loans (collectively, “Covered Loan Products”) with Navy Federal Credit Union. Cash-out refinance transactions, however, are not eligible for the no-refi rate-drop option.
(B) (1) You must contact us and request to exercise the no-refi rate-drop option; (2) the reduced interest rate for your loan must be at least 0.25% lower than your existing rate when you request to exercise the no-refi rate-drop option; (3) your loan must be current with no more than one monthly payment, which includes principal, interest, taxes, and insurance, that has been 30-days late or more within the last 6 months of your request; (4) you have made at least 6 consecutive monthly payments, which includes principal, interest, taxes, and insurance, on your loan since closing or the last time you exercised your no-refi rate-drop option; (5) you do not have an active bankruptcy case pending or you have not filed for bankruptcy protection within 6 months prior to your request; (6) your loan is not in an active loss mitigation option, process, or consideration; and (7) you continue to own the property, notwithstanding successor-in-interest exceptions.
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4All Choice loans require a 1.00% loan origination fee. The origination fee may be waived for a 0.25% increase in the interest rate. All Choice loans are subject to a funding fee of 1.75% of the loan amount. This funding fee can be financed into the loan up to a maximum of 101.75% LTV, or the fee can be waived for a 0.375% increase in the interest rate. Purchase loans require no down payment. LTV restrictions apply to refinance loans. Note: To be eligible for Military Choice, at least one borrower must be Active Duty, Reservist, or a veteran.
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5RATES AND TERMS ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE. To exercise the no-refi rate-drop option, you must contact Navy Federal. You are solely responsible for monitoring Navy Federal’s available rates and determining when to exercise the no-refi rate-drop option, subject to the eligibility criteria identified above. Contact Navy Federal at 1-703-255-8665, Option 1, to check your eligibility and current rates. Navy Federal will only reduce the interest rate of a Covered Loan Product under the no-refi rate-drop option if all applicable criteria are satisfied at time of your request to exercise the option. These terms and conditions do not constitute a commitment to lend, nor a guarantee that you will be approved, for a mortgage loan from Navy Federal Credit Union.
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6Exercising the no-refi rate-drop option will permanently reduce your interest rate, as well as the remaining principal and interest payments on your loan, but will not modify any other terms contained in your loan documents, including the principal balance, maturity date, and additional amounts due for escrows as part of your monthly Periodic Payment under your Security Instrument.
