“Take up of these programs has been slower among some of the larger depository lenders, and these new changes incorporate feedback we have received about how to make the programs more effective and how to reduce frictions in the process.”Īccording to Freddie Mac, borrowers who take advantage of the program can lower their mortgage payment between an estimated $100 to $250 per month.
“We first announced these programs in the spring, as a way of helping low- and moderate-income borrowers access the same refi opportunities that higher income borrowers were using,” Thompson said in a speech at the Mortgage Bankers Association 2021 Annual Convention in San Diego. The programs will soon also be available to borrowers with incomes at or below 100% of the area median income.Īccording to FHFA Acting Director Sandra Thompson, raising the income threshold will “significantly” increase the population of potentially eligible borrowers. The Federal Housing Finance Agency (the government agency that regulates Fannie Mae and Freddie Mac) announced recently that Fannie and Freddie will be expanding these programs to increase the number of people eligible to participate.Ĭurrently, Fannie Mae’s RefiNow and Freddie Mac’s Refi Possible programs were available to borrowers with income at or below 80% of the area median income.īeginning in January 2022, that income limit will increase, making more people eligible to take advantage of the programs. Aiming to allow more people to take advantage of the current market’s lower interest rates, the companies will soon be expanding these programs. Earlier this year, Fannie Mae and Freddie Mac announced new refinance programs targeted at lower-income borrowers who previously may not have been able to refinance their mortgage to decrease their monthly payment.
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