With the impact of Covid waning, Congress has wound down much of its Covid–era mortgage stimulus.
Fortunately, there are still mortgage relief programs available to homeowners who need them.
Mortgage relief can come in many forms. Whether you need a lower rate and payment or a break from making payments altogether, there are options. Here’s what to do.
What is Freddie Mac Enhanced Relief Refinance (FMERR)?
HARP program expired on December 31, 2018. To ensure that high LTV borrowers who are eligible for HARP program continue to have a refinance option the Federal Housing Agency (FHFA) launched a new program: Freddie Mac Enhanced Relief Refinance (FMERR)
This program is essentially an extension of HARP but with different names and slightly different requirements. Through the new program, homeowners can get a lower interest rate (which means less out-of-pocket costs each month), get a shorter loan term, or change from an adjustable to a fixed-rate mortgage. There’s no minimum credit score needed, either.
Freddie Mac Enhanced Relief Refinance (FMERR)
The Freddie Mac Enhanced Relief Refinance℠ Mortgage provides opportunities to borrowers with existing Freddie Mac mortgages who are making timely payments but are unable to take advantage of the standard Freddie Mac “no cash-out” refinance offering because the new mortgage exceeds maximum loan-to-value (LTV) limits.
Who is the Enhanced Relief Refinance Mortgage for?
- Borrowers who want to refinance into a more sustainable mortgage that promotes long-term homeownership success
- Borrowers looking to reduce the monthly principal and interest payment of their First Lien Mortgage
- Borrowers who are interested in potentially reducing principal and interest payment
- Reduced monthly principal and interest payment
- Lower interest rate
- Shorter amortization term
- Move from an adjustable-rate mortgage to a fixed-rate mortgage
How FMERR program can help me?
If you are current on your mortgage; have a mortgage that is owned by Fannie Mae or Freddie Mac, and owe as much or more than your home is currently worth, you may be eligible for new refinancing programs. Borrowers must benefit from the refinance in at least one of the following ways:
- Lowering your monthly payment
- Reducing your interest rate
- Securing a fixed-rate mortgage that won’t change over time
- Building equity faster shorter-term options may be available
- Lower closing costs because an appraisal is not usually required