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Published: Jun 02, 2021 5 min read
Row of houses in a suburbs from a drone point of view
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Two new mortgage refinance programs launching this summer should make it a little easier for lower-income borrowers to save on their home loan payments.

Starting on June 5, Fannie Mae will offer a product called Refi Now. Freddie Mac’s version, called Refi Possible, is set to launch on August 30. Borrowers with loans backed by Fannie or Freddie and who make 80% or less than their area’s median household income will qualify.

Last year, over 7 million homeowners refinanced their mortgages, according to the Mortgage Bankers Association. Freddie Mac estimates that homeowners who refinanced last year will save an average of $2,800 on mortgage payments each year of their loan. That’s $233 back in their pockets every month.

However, more than 2 million low-income homeowners were left out of the boom, according to estimates from the Federal Housing Financing Agency. The reasons for not refinancing vary, but included not being able to afford closing costs or having a credit scores that isn't high enough to qualify.