New mortgage refinance programs are expanding to reach more homeowners

For Stacey Foley, refinancing her mortgage was a no-brainer.

After paying roughly 4.25% in interest on her existing home loan, refinancing at 3.25% with limited closing costs has saved her $200 monthly.

“Two hundred dollars doesn’t sound like a lot of money, but over a year it is,” Foley said. 

The North Carolina resident was able to qualify at online mortgage lender Better.com through a new government refinancing initiative called RefiNow. It targets low- to moderate-income borrowers who might otherwise struggle to secure competitive loan terms.

Launched in June by Fannie Mae, the program recently increased the income limit for qualifying and loosened…