Freddie Mac’s Enhanced Relief Refinance
With mortgage interest rates currently at a near all-time low, refinancing looks to be an attractive option for many homeowners. However, a lot of refinancing routes require built up equity. If you have yet to accrue some equity on your home, there may still be a way to refinance courtesy of Freddie Mac’s Enhanced Relief Refinance (FMERR) option.
What Is Freddie Mac’s Enhanced Relief Refinance?
Typically, those with a high loan-to-value (LTV) ratio and no positive equity find it difficult and unfeasible to refinance. However, up until 2018, such homeowners could refinance under the Home Affordable Refinance Program (HARP). Intended as a replacement for HARP, the FMERR program is seeking to help homeowners refinance with little or no equity—even if they are underwater on their mortgage or owe more than their house is worth. However, certain qualifications must first be met.
Freddie Mac’s Enhanced Relief Refinance Qualifications
To qualify for this option, your loan will have to be owned by either Fannie Mae or Freddie Mac and you will need to be current on your payments. You must also meet timing rules and pass debt-to-income ratio and credit tests and there must also be a verifiable benefit such as:
- Going from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage
- Decreasing the interest rate
- Lowering the monthly payment
- Shortening the term of the loan
How to Know if Freddie Mac’s Enhanced Relief Refinance Is Right for You?
If you think the FMERR might be a route you would like to explore, the experienced team at Butler Mortgage can help you assess your current loan situation to see if this is the optimal choice for you as a homeowner. If it is not, our professionals can also help you navigate an alternate refinance process and secure desirable rates that fit your budgetary needs.
Benefit from a Refinance With Butler Mortgage
For over 25 years, Butler Mortgage has worked with both first-time and seasoned buyers wanting to own or refinance a home in Central Florida. Let us help you find the right loan solution for you by calling 407-931-3800 or by filling out our free consultation form online.