Homeowners who have waited patiently to see if rates will go lower finally have their chance.
Check your refinance eligibility. Start here (Dec 3rd, 2025)According to Freddie Mac, the 30-year fixed-rate mortgage fell to the lowest rate ever recorded during the week of January 6, 2021, to 2.65%. Rates are still close to their lowest levels in history.
The agency has been tracking rates for nearly 50 years.
But what about those who owe more than their home is worth and can’t refinance? What can they do? Up until 2018, there was HARP.
Now there are new refinance programs available to help homeowners with very little equity refinance at today’s low rates.
Check your refinance eligibility. Start here (Dec 3rd, 2025)TIP: With home values increasing nationwide, many homeowners who previously had too little equity to refinance now qualify! Check your refinance eligibility. Start here.
Standard loans require you to have 10-20% equity before a refinance is possible. If a homeowner is “upside-down” with a mortgage, the borrowers would either have to pay down the mortgage to an acceptable level or give up trying altogether.
But current refinance programs may be available to homeowners with little or even no home equity.
Check your refinance eligibility. Start here (Dec 3rd, 2025)Mortgage stimulus program and other good news for homeowners
For many, there’s never been a better time to be a homeowner. Home prices are rising very quickly and, even if you’re struggling to keep up with payments, various mortgage refinance programs are standing by to help you out.
Mortgage rates are near all-time lows and homeowners could stand to save significantly on their monthly payments. But what if you’re blocked from refinancing because your mortgage balance is close to your home’s market value — or is even higher? Well, there may be good news for you, too.
Fortunately, home values have been rapidly rising across the country. Fewer and fewer homeowners are underwater.
As a result, many homeowners may be eligible to refinance, even without a special program like HIRO or FMERR. It’s worth checking your refinance eligibility to determine whether you could benefit from low-interest rates and a reduced monthly payment.
Check your refinance eligibility. Start here (Dec 3rd, 2025)Mortgage Refinance Relief in 2026
The HARP program (Home Affordable Refinance Program) was live between April 2009 and the end of 2018. It helped more than 3.5 million borrowers successfully refinance their Fannie or Freddie mortgages.
In recent years, the Fannie Mae High LTV Refinance Option (HIRO) and the Freddie Mac Enhanced Relief Refinance (FMERR) program were introduced to offer similar refinance relief to HARP.
Take advantage of historically low interest rates with refinance relief programs
These new programs are important because mortgage rates have plunged in the last 18 months. The 30-year-fixed mortgage rate hit its lowest level ever in early January 2021, bottoming out at 2.65%.
Even as of October 2021, 30-year fixed-rate mortgage rates hovered just below or slightly above 3%.
| Weekly Rate Trends | 30-Year Fixed | 15-Year Fixed |
| 11/20/25 | 6.26% ↑ | 5.54% ↑ |
| 11/13/25 | 6.24% | 5.49% |
| 11/6/25 | 6.22% | 5.50% |
| 10/30/25 | 6.17% | 5.41% |
Copyright 2026 Freddie Mac. Averages are based on conforming mortgages with 20% down.
Homeowners with home values that were too low relative to their mortgage balances were barred from taking advantage of these historically low interest rates — and from the substantial monthly savings that came with them.
That’s where HIRO and FMERR come in. Both programs allowed homeowners to refinance their Fannie or Freddie mortgages, even if their homes were “underwater,” or higher than their homes’ market value. Though these relief programs are currently paused, many homeowners are finding they can still refinance to a lower payment thanks to rising equity and low interest rates.
Check your refinance eligibility. Start here (Dec 3rd, 2025)HIRO: The middle-class mortgage stimulus package
Editor’s note: Fannie Mae has temporarily paused the HIRO program due to a low number of applicants. With home equity increasing nationwide, many owners are eligible to refinance without needing a special program like HIRO. Contact a lender to check your equity levels and find out whether you qualify for a refinance.
Some even call the HIRO program a middle-class stimulus program. Why? First, it replaces HARP, a loan program that was first enacted by Congress in 2009 to help millions of homeowners to refinance their mortgage and get a lower rate without needing any equity at all.
Second, the HIRO loan helps underwater homeowners reduce rates and payments, just as rates are falling to fresh lows.
A refinance can put serious money back into the pockets of middle-class Americans, which stimulates the economy — not to mention the everyday household.
HIRO comes with other advantages. You can often qualify for an appraisal waiver, saving hundreds of dollars. But even if you need an appraisal, value doesn’t matter. You can owe $200,000 on a home currently valued at $175,000 and still lower your rate with a refinance.
That leaves potentially thousands of homeowners who might have applied for the 2009 HARP but didn’t get the chance before the federal government program expired.
Check your refinance eligibility. Start here (Dec 3rd, 2025)HIRO Eligibility: Qualify for mortgage relief and a lower interest rate
The HIRO qualifications are relatively simple, but they are important. You may be eligible for HIRO if:
- Your current mortgage loan is owned by Fannie Mae*
- Your loan must have been originated after October 1, 2017
- At least 15 months have passed from the note date of the existing loan to the note date of the new home loan
- You have made all your payments on time in the last 6 months
- Your mortgage balance is 97.1% or higher as a percentage of your home’s market value, for a one-unit, owner-occupied dwelling
*You may not even know that your mortgage is owned by Fannie Mae. If you’re unsure, use this lookup tool on the Fannie Mae website.
If you meet these conditions you are very likely to have access to lower rates but you need to act now before rates go up. Speak with your mortgage lender about relief options.
FMERR: The Enhanced Relief Refinance Program
Editor’s note: Freddie Mac has temporarily paused the FMERR program due to a low number of applicants. With home equity increasing nationwide, many owners are eligible to refinance without needing a special program like FMERR. Contact a lender to check your equity levels and find out whether you qualify for a refinance.
For borrowers with a mortgage through Freddie Mac, Freddie Mac’s Enhanced Relief Refinance program (FMERR) was created to help homeowners with limited equity take advantage of historically low interest rates and reduce their monthly payments.
Check your refinance eligibility. Start here (Dec 3rd, 2025)FMERR Eligibility: Qualify for mortgage relief and a lower interest rate
You may be eligible for FMERR if:
- Your current mortgage is owned by Freddie Mac*
- Your loan was originated on or after November 1, 2018
- Your LTV is at least 97.01% for a one-unit, owner-occupied resident
- You have made all your payments on time in the last 6 months
- Your mortgage balance is 97.1% or higher as a percentage of your home’s market value, for a one-unit, owner-occupied dwelling
*You may not even know that your mortgage is owned by Freddie Mac. If you’re unsure, use this lookup tool on the Freddie Mac website.
If you meet these conditions you are very likely to have access to lower rates but you need to act now before rates go up. Speak with your mortgage lender about relief options.
Is there congress mortgage stimulus or COVID-19 mortgage relief?
Although there’s no current mortgage stimulus from Congress, there is federal help available for homeowners.
When President Joe Biden signed the American Rescue Plan into law in March 2021, it famously included stimulus checks to nearly all households. It also provided special financial assistance for homeowners who were — or are — struggling financially as a result of the COVID-19 pandemic.
The Homeowner Assistance Fund (HAF) is intended to help with your monthly mortgage payments — and with property taxes, homeowners insurance, homeowners association (HOA) fees and utility bills.
Although these are federal funds, they’ve been sent out to states to administer. For help, you apply to your state’s housing finance agency. Locate your state’s agency and contact information with this lookup tool.
There are some eligibility requirements for these funds. To qualify, your mortgage balance must be $548,250 or less, and most of the funds are designated for borrowers with average or below-average incomes.
Negotiating mortgage forbearance
Most mortgage servicers are willing to work with borrowers who may be falling behind on their mortgage loans. If you’re unsure who your loan servicer is, this lookup tool can help you find that information.
However, if your mortgage is owned by Fannie or Freddie or is a government-backed loan (an FHA, VA or USDA loan), you have more defined rights. You could be allowed to pause or reduce your mortgage payments for an agreed-upon forbearance period (up to 18 months in extreme cases).
Of course, you’ll still owe the money you’ve delayed paying and will have to repay it at some point in the future. Still, with these particular loans, you shouldn’t face any additional fees, interest or penalties.
For more information, visit the Consumer Financial Protection Bureau information page.
Check your refinance eligibility. Start here (Dec 3rd, 2025)FHA, VA and USDA loans: Take advantage of low interest rates for govvernment-backed loans
If you have a government-backed loan — an FHA, VA or USDA loan — you won’t be able to take advantage of the HIRO or FMERR programs.
Still, there’s another great refinance option available, to enable homeowners to reduce their mortgage interest rate — even if their home’s market value is low compared to their mortgage balance.
If your mortgage is backed by the Federal Housing Administration, the Department of Veterans Affairs or the United States Department of Agriculture, you have refinancing options, even if your mortgage is underwater.
FHA, VA and USDA loan programs all offer Streamline Refinance options, which are quick and affordable refinance loans with reduced eligibility requirements. These Streamline Refinance programs require little paperwork and take less time and money than a conventional refinance.
Streamline Refinance Eligibility: Lower your interest rate quickly and affordably
You may be eligible for a Streamline Refinance if:
- You have an FHA, VA or USDA loan
- You will benefit demonstrably from the refinance, such as by a lower mortgage rate or monthly payment
- No missed payments in the last 6 months
If you meet these conditions you are very likely to have access to lower rates but you need to act now before rates go up. Speak with your mortgage lender about your personal finances and relief options.
Check your refinance eligibility. Start here (Dec 3rd, 2025)VA Streamline Refinance
Though not a formal mortgage relief program, VA borrowers can take advantage of the VA Streamline Refinance, also known as the Interest Rate Reduction Refinance Loan (IRRRL), which allows military service members and their families to quickly and affordably take advantage of low interest rates and reduce their monthly mortgage payment.
One notable benefit of the IRRRL is that borrowers can roll all closing costs into the new loan and pay them down over the life of the loan. That means it’s possible to refinance without spending any money up front.
For borrowers looking to reduce their interest rate without taking any cash out of their home equity, the VA Streamline Refinance is one of the best mortgage products on the market.
VA Streamline Refinance Eligibility: Lower your interest rate and monthly payments
To qualify for a VA Streamline Refinance, you must meet the VA’s minimum service requirements. Most veterans, including National Guard and Reservists and their families, can qualify.
You can typically qualify for a VA Streamline Refinance without any credit score, income or asset verification, or without a property appraisal. That means you can refinance quickly and affordably.
In addition to those minimum service requirements, you may be eligible if you meet the following criteria:
- You have made all your payments on time in the last 6 months
- It’s been 210 days or more since you closed on your existing loan
- You will benefit demonstrably from the new mortgage, such as by a lower mortgage rate or monthly payment
Mortgage Refinance Relief FAQ
Does Congress have a mortgage stimulus program?
Although there’s no current mortgage stimulus from Congress, there is federal help available for homeowners. In March 2021, the American Rescue Plan designated $10 billion to help struggling homeowners. The funds are distributed by individual states and you can locate your state’s agency and contact information with this lookup tool.
What is the Congress mortgage stimulus program?
Although there’s no current mortgage stimulus from Congress, there is federal help available for homeowners. It’s called the Homeowner Assistance Fund. This money is intended to help with a variety of homeownership costs, in addition to monthly mortgage payments, including property taxes, homeowners insurance, utility bills and HOA dues.
Is HARP still available?
No. HARP (the Home Affordable Refinance Program) was discontinued on the last day of 2018. HIRO and FMERR were launched in 2021 and serve a similar function.
Are mortgage relief programs real?
Yes, these mortgage relief programs are real and available to help homeowners experiencing financial hardship. Be sure to apply for mortgage assistance directly through your state’s housing finance agency.
Who is eligible for mortgage relief programs?
You may be eligible for one of several mortgage relief programs, depending on the type of mortgage you have, even if your home value is low compared to your mortgage balance.
Check your refinance eligibility. Start here (Dec 3rd, 2025)