FMERR stands for Freddie Mac Enhanced Relief Refinance. It's a refinancing program that was designed to help homeowners who have little or no equity in their homes refinance into a better mortgage. Specifically, it’s targeted at borrowers who owe more on their mortgage than their home is currently worth or have very little equity, also known as being “underwater” on their mortgage.
Are You Eligible for FMERR?
Not every homeowner qualifies for FMERR. Here’s what you need to know:
- Freddie Mac Loan: Your current mortgage must be owned by Freddie Mac.
- Loan Origin Date: Your mortgage must have originated on or after November 1, 2018.
- Good Payment History: You must be current on your mortgage payments, with no more than one missed payment in the last 12 months and none in the most recent six months.
If you meet these criteria, you could be eligible to refinance through the FMERR program and take advantage of more favorable loan terms.
A Few of the Key Benefits of FMERR
Freddie Mac’s Enhanced Relief Refinance offers several valuable benefits:
- Lower Interest Rates: The opportunity to refinance to a lower interest rate is one of the most compelling reasons to explore FMERR.
- Shorter Loan Terms: By refinancing, you could reduce your loan term and pay off your mortgage faster.
- Switch to Fixed-Rate: If you’re currently in an adjustable-rate mortgage (ARM), you can switch to a fixed-rate loan, offering stability and predictable monthly payments.
- No Appraisal Required: Unlike other refinancing options, FMERR doesn’t always require a new appraisal, making the process faster and less costly.
These benefits can significantly reduce your monthly payments and long-term mortgage costs, providing much-needed relief to homeowners.
So if you're stuck with a high-interest mortgage or have little to no equity in your home, give us a call today to see if you can take advantage of the Freddie Mac Enhanced Relief Refinance program.