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
No Closing Costs
Only One Document to Sign
How to Get Your New, Lower Mortgage Rate
Will my loan terms start over, like with a refinance?
Which loans are eligible for the no-refi rate drop?
Who Is eligible for the no-refi rate drop?
Can I get a no-refi rate drop more than once?
Could my new rate go up while Navy Federal completes the process?
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.
The Mortgage Loan Process in 10 Steps
It starts with a preapproval and finishes with your perfect home. We've broken down the process to make it easier for you.Learn More about The Mortgage Loan Process in 10 Steps
A preapproval lets sellers know you're a serious buyer and gives you more negotiating power when it comes time to make an offer.Learn More about Mortgage Preapproval
Closing On Your Mortgage
The last step in your home-buying journey is closing on your mortgage—also referred to as settlement. After you complete the process, legal ownership will be transferred to you.Learn More about Closing On Your Mortgage
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.↵
A Military Choice loan of $300,000 for 30 years at 7.875% interest and 8.224% APR will have a monthly payment of $2,175. A Jumbo Military Choice loan of $800,000 for 30 years at 8.250% interest and 8.607% APR will have a monthly payment of $6,010. 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 $726,200 up to $1,000,000.
A Homebuyers Choice loan of $300,000 for 30 years at 8.000% interest and 8.351% APR will have a monthly payment of $2,201. A Jumbo Homebuyers Choice loan of $800,000 for 30 years at 8.375% interest and 8.735% APR will have a monthly payment of $6,080. 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 $726,200 up to $1,000,000.
A jumbo fixed loan of $800,000 for 30 years at 6.625% interest and 6.747% APR will have a monthly payment of $5,122. 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 $726,200 are jumbo loans. In AK and HI, any loan over $1,089,300 is considered a jumbo loan.↵
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.↵
All 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.
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.↵
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.↵