Many options are available when you are looking to make lower mortgage payments on your home. Though the mortgage process has seemingly gotten more complicated over the years, many new programs exist that can help make our lives a little bit easier and reduce our financial burden. The Freddie Mac Enhanced Relief Refinance Program (FMERR) is one such program.
The values of homes across the nation have been steadily increasing over the years, and the last thing you should want is a default on your home mortgage. When you are considering opting for the FMERR program, here is what you should know:
What Is The FMERR Program?
The FMERR program was established to aid borrowers that didn’t have ample equity to refinance their mortgage at a lower rate. However, it also helped ensure that they had to pay lower monthly payments with a more extended repayment plan.
When you don’t know the value of your home before looking for refinancing options, you might end up getting declined for some refinancing programs. Ensure that you have a general idea about how much your home is worth, how much of the principal loan you have already paid back, and more.
Benefits
When you search for a good refinancing program, the FMERR can be ideal for various reasons. Your new loan from the program will have:
- Different amortization period
- Option of switching loan type from adjustable-rate to fixed-rate
- Smaller monthly repayments
- Overall lower interest payments
Depending on your current financial situation, opting for a program that helps you pay for your home over a longer period might be what you need. You can always contact an expert or look through online forums about other benefits of the FMERR program and how they can cater to you.
Eligibility
If you are considering applying for the Freddie Mac Enhanced Relief Refinance Program (FMERR), you should know the requirements. You are only eligible for the program if:
- Freddie Mac owns the existing mortgage
- To loan has to be from after November 1, 2018, or anytime later
- Your repayments have been consistent in the last six months, and you have not missed any
- The new loan should be at least 15 months after taking your existing loan
You might also need to contact a lender to find out whether other eligibility criteria exist. They can also help you out when you’re looking for alternatives.
What You Should Consider
When you consider opting for this program, you have to judge its convenience in your life. If you would genuinely benefit from a program with low-interest rates and longer repayment options, it is best to go for it. However, if you have the money or resources to pay back your home, you might not want to go for this program.
You don’t require a lot of equity to be able to apply for this program. No appraisal will be required as Mac Freddie has a Home Value Explorer that decides the eligibility of your property.
Applying for The FMERR Program
If you want to stop being consistently worried or overwhelmed by your mortgage, opting for the FMERR is the best thing you can do for your mental health. Ensure that you read through all the terms and conditions so you don’t get blind-sided later. It is best to clear out any doubts at the start itself.
