Empower Blog

October 04, 2021

How New Mortgage Refinance Programs Can Help You

If you've been putting off refinancing your mortgage because you think you won't qualify, now is a great time to reconsider. With mortgage rates at historic lows, you may be surprised at how much you could save. Plus, the Federal Housing Finance Agency (FHFA) is offering new mortgage refinance programs that are expanding access to lower mortgage rates for Fannie Mae and Freddie Mac borrowers, based on specific income qualifications. You can check if your mortgage is owned by Fannie Mae here or Freddie Mac here.

RefiNow™ and Refi Possible Programs

The FHFA initiative makes refinancing more accessible and offers savings and reduced up-front costs for those who qualify. The options include RefiNow™ for Fannie Mae borrowers, which is available now, and Refi Possible for Freddie Mac-backed mortgages, which will start in late October. The perks of both programs for those who meet the qualifications include:
  • Guaranteed Lower Interest Rate & Monthly Mortgage Payment – Your interest would go down by at least 0.5% and your monthly payment would decrease by at least $50, with the potential for even more savings.
  • Appraisal Credit – If an appraisal is necessary, you could get a credit of up to $500 from the lender.

Why It Matters

These offers of savings and credits are not often available. Typically, refinanced interest rates are based on the borrower's qualifications, such as credit score, debt-to-income ratio, the loan-to value ratio on the home and more, which can leave some borrowers at a disadvantage.

RefiNow™ and Refi Possible provide a special opportunity for more people to qualify for a mortgage refinance that also includes the unique benefits mentioned above to help make their mortgage more affordable. On average, the FHFA estimates that RefiNow™ and Refi Possible could help borrowers save anywhere from $100 to $250 per month, which equals a total savings of up to $1,200 to $3,000 per year.

Reasons to Refinance

While refinancing your mortgage can save you money that you can put towards other things, it can also enable you to:
  • Change the term of your mortgage to pay it off faster
  • Cash out on your home’s equity for renovations, large purchases or debt consolidation
  • Eliminate Private Mortgage Insurance (PMI)
  • Help you qualify for or maximize your share of Profit Payout1
CommunityAmerica is proud to participate in these exciting programs. You can learn more here or by giving us a call at 913.905.3799. We'd be happy to help you understand your eligibility, refinance options and answer any other questions you might have.
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About the Author
jackie reed
Jackie Reed

Branch and Outbound Mortgage Sales Manager

Jackie Reed enjoys getting to know members on a personal level by working to understand their financial goals and how that coincides with homeownership or their desire to own a home in the future. Owning and maintaining a home is one of the largest financial investments a person will make in their lifetime, and Jackie and her team understand the importance of finding the right mortgage product to assist in the process.