As mortgage interest rates hover near 4 percent, many families are asking, ‘Is now a good time to refinance my mortgage?’ No one solution fits all, but Fannie Mae helps homeowners refinance when it makes sense for them to do so.
In fact, we have enabled more than 5.5 million refinancings since 2009 – through the Administration’s Home Affordable Refinance Program and our own programs. The benefits can be significant.
Refinancing typically makes families’ mortgage payments more affordable because they can lower the interest rate or
adjust other terms of their loans. We have found that the average savings is about $2,500 per year for 30-year, fixed-rate to 30-year, fixed-rate mortgage refinances. That's more than $200 per month that families can use for necessities or savings.
Refinancing also allows families to get into more stable fixed-rate mortgages. In other situations, refinancing may help struggling families stay in their homes and avoid foreclosure.
These are just some of the reasons that millions of American families have taken advantage of our support.
When families have mortgages that they can afford over the long-term, it helps sustain and stabilize the housing market. We are committed to helping build a sustainable housing finance system.
Senior Vice President
September 25, 2011