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Don't Wait! Buy a Home Now, Lower Your Rate Later

Have you been putting off buying a home, hoping that mortgage rates will drop? With our easy, no-refi rate drop, you can buy a home now and if our rates drop later, you could lower your rate for a one-time $250 fee.1 2

Take Your Rate From Good to Great

If our mortgage rates drop after 6 months, you could lower your rate without refinancing—saving you thousands on closing costs and lowering your monthly payment.3 This is an exclusive opportunity for members who have a Navy Federal Homebuyers Choice, Military Choice or jumbo fixed-rate loan.4

Get These Unheard-of Benefits When You Lower Your Rate

How to Get Your New, Lower Mortgage Rate

STEP 1: Give Us a Call5

If you've had your loan with us for 6 months or more and you're seeing mortgage rates going down, give us a call at 1-703-255-8665, Option 1, to start the process and see if you're eligible.3

STEP 2: Ask for Our No-Refi Rate Drop

If you're eligible for the no-refi rate drop, we'll send you an agreement to sign within 5 business days. 

STEP 3: Sign and Return Your Agreement With the $250 Fee 

The agreement can be provided to you via eMessage or overnight delivery. The signed agreement must be sent back to us via Express Mail with the paid label we'll provide. Include a check for the $250 fee or we can deduct it from your Navy Federal account.

STEP 4: That's It! Your New Lower Rate Will Take Effect in 30–60 Days 

You're guaranteed to get the rate that is current on the day you call in, even if rates go up while we process your paperwork. 


Mortgage Rate Reduction FAQs

No. The length of your loan will stay the same,  and you'll keep the same amortization schedule.6

Navy Federal Homebuyers Choice, Military Choice and fixed-rate jumbo loans are eligible.4 Adjustable-rate mortgages, VA loans and regular conventional loans are not.

Members who have had their Homebuyers Choice, Military Choice or jumbo fixed-rate mortgage with us for 6 months or more could be eligible.3 4

Yes. If rates drop, you can lower your rate multiple times during the life of your loan as long as you are eligible and pay the $250 fee. 2 1

No. You're guaranteed to get the rate that is current on the day you call us to begin the process—even if mortgage rates go up nationally.

Why Choose Navy Federal?

No matter what your needs are, we have a loan for you—including options that don't require a down payment, so you can buy a home now without waiting years to save. None of our loans require private mortgage insurance, helping to keep your monthly payment manageable.

Mortgage Resources

Disclosures

1

You 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. 

2

Payment examples:

A Military Choice loan of $300,000 for 30 years at 7.250% interest and 7.586% APR will have a monthly payment of $2,046. A Jumbo Military Choice loan of $800,000 for 30 years at 7.625% interest and 7.968% APR will have a monthly payment of $5,662. 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 7.375% interest and 7.713% APR will have a monthly payment of $2,072. A Jumbo Homebuyers 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 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 6.750% interest and 6.898% APR will have a monthly payment of $5,188. 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.

3

To 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.

4

All Choice loans require a 1.00% origination fee, which 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 may be financed up to the maximum allowed loan amount, or the fee may be waived for a 0.375% increase in the interest rate. Purchase loans require no down payment in most States. LTV restrictions apply to refinance and non-primary residence loans. All loans subject to approval. Note: To be eligible for Military Choice, at least one borrower must be Active Duty, Reservist, or a veteran.

5

RATES 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.

6

Exercising 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.