A Fannie Mae change could help homeowners save

Published August 18, 2021

Updated April 17, 2026

Better
by Better

Mortgage News: A Fannie Mae Change Could Help Homeowners Save


Here’s how your credit score could go further on a refinance

On September 18th, Fannie Mae is rolling back restrictions that impact how lenders evaluate credit scores. Instead of considering only the lowest of two FICO scores between a primary and co-borrower, lenders will now be able to combine them for an average score. That means you’ll be represented by either the same score or higher when applying to a Fannie Mae-backed lender like Better Mortgage.

Your credit score is a large part of how lenders evaluate your ability to pay back a loan. The higher your score, the lower the rate you likely qualify for—which means more savings on a refinance. It also affects the price of your mortgage insurance, which is required if you make a down payment less than 20%. Get a sense of how your credit score affects your mortgage, and how to improve it before applying.

This change is coming just in time as mortgage rates begin to tick upward. America’s most popular home loan, the 30-year fixed rate mortgage, reached 2.87% last week. That’s not far from its all-time low of 2.65%, but it is a 0.10% jump from the week before.

The market drove rates up in response to the country’s latest jobs report. Employment and wages are increasing, and a healthy economy usually means higher mortgage rates. It may help to move quickly on your refinance before they can rise further, so see what today’s rates mean for your budget.

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