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The Federal Housing Finance Agency (FHFA) has announced a new mortgage program called the FMERR or Enhanced Relief Refinance Program. This program is designed to help homeowners struggling to make their monthly mortgage payments due to unemployment, underemployment, or other financial hardships.
This article will provide a guide to the FMERR details. We will discuss eligibility requirements, applying for the program, and the benefits of refinancing through FMERR.
What is the FMERR mortgage program?
Many US citizens struggle to make their monthly mortgage payments. Reports state that Washington DC has the highest average mortgage debt of all US states. If you live in Washington DC, or any other state for that matter, and are having trouble making your mortgage payments, the FMERR Mortgage program may offer you some relief. The FMERR Mortgage program is a government-sponsored mortgage refinancing program introduced in early 2017.
The program is designed to help US citizens struggling to pay loans on time. The program offers eligible homeowners the chance to refinance their mortgages at a lower interest rate.
Here’s how the program works:
If you are an owner with a mortgage owned or guaranteed by Freddie Mac or Fannie Mae, you are eligible to refinance the mortgage through the FMERR program. Fannie Mae and Freddie Mac are companies that assure most mortgages made in the US.
To be eligible, your mortgage must have originated on or before May 31, 2009. You must also be current on your mortgage payments and cannot have been more than 30 days late on repayment in the last 12 months.
In addition, your home must be your primary residence, and you must use the FMERR details to refinance your first mortgage only – you cannot use it to refinance a second mortgage or home equity line of credit.
If you meet the eligibility requirements, you can begin the process by submitting a completed application to your lender.
How to apply for the FMERR mortgage program
Your lender will be able to help you submit a completed application for the FMERR Mortgage program. Ensure to include all documentation, such as proof of income, employment, and assets.
If your loan is currently guaranteed or owned by Fannie Mae or Freddie Mac, you do not need to contact them to apply for the FMERR program – your lender will do that for you.
If you have doubts regarding the program or the application process, your lender should help.
Top benefits of the FMERR mortgage program
The FMERR program offers several benefits to eligible homeowners. Perhaps the most significant benefit is the lower interest rate you’ll pay on your mortgage.
With a lower interest rate, you’ll have more money each month to put towards other expenses – or to save.
In addition, if you’re currently behind on your mortgage payments, the FMERR program can help you get back on track. You may also reduce your monthly payment and save on interest costs.
Final thoughts
The FMERR mortgage program is an excellent way for homeowners to get relief from their current mortgage. If you are planning to refinance, be sure to check out the FMERR program and see if you qualify.
