Go Back

Fannie Mae Drops Mortgage Modification Interest Rate to Lowest Level Ever

New rate takes effect on Sept. 15

After raising the benchmark interest rate for its standard modification program twice in the last three months, Fannie Mae is set to drop the benchmark rate back down to the lowest level it’s ever been.

Beginning Sept. 15, Fannie Mae will lower its required interest rate for standard modifications from 4.25% to 4%.

The standard modification rate has only been that low three other times since the modification interest rate was first established in Jan. 2012.

The only other times the standard modification interest rate has been 4% were in February and May of this year, as well as December 2012.

In July, Fannie Mae raised its required interest rate for standard modifications from 4.125% to 4.25%. The standard modification rate hadn’t been that high since Nov. 2014.

According to Fannie Mae’s website, the Standard Modification program is “designed to help those borrowers who are ineligible for the Home Affordable Modification Program.” Therefore, the new rate does not extend to HAMP borrowers.

When the program began in Jan. 2012, Fannie’s benchmark interest rate was 4.625%.

© 2006 - 2018. All Rights Reserved.