The goal of Fannie Mae’s and Freddie Mac’s refi programs is to help low- to moderate-income households take advantage of historically low mortgage rates.

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 some other requirements to make it easier for borrowers to participate. Freddie Mac also is offering a similar initiative, called RefiPossible. (Fannie and Freddie are government-sponsored and publicly traded enterprises that buy and sell mortgages.)

The changes “are broadening the population that can qualify and are making the transactions have less friction,” said Mike D’Ambrosio, director of credit risk at Better.com.

With rates reaching historical lows in 2020, refinancing activity hit roughly $2.6 trillion last year, according to Freddie Mac. That marks the highest annual total since 2003, when $3.9 trillion in refinancing was recorded.