Homepoint, an Ann Arbor, Mich.-based mortgage origination and servicing company, is expanding its program offerings to help additional eligible low-income borrowers take advantage of low interest rates to lower their mortgage payments.
Homepoint now offers Freddie Mac’s new refinance option, Refi Possible, making it easier for many homeowners with a Freddie Mac-owned mortgage to reduce their interest rate by a minimum of 50-basis points and save on monthly mortgage payments.
“With interest rates still at historic lows, we are excited to roll out this new refinance program to enable even more customers in our servicing portfolio to save money on their mortgage,” said Phil Shoemaker, Homepoint’s president of originations. “This presents more opportunity for our mortgage broker partners to communicate with qualified customers who would stand to benefit from refinancing before rates rise.”
Additionally, Homepoint will provide a maximum $500 appraisal credit for borrowers who are not eligible for an appraisal waiver. Flexible loan terms are available, so borrowers are not required to extend their loan term.
The Federal Housing Finance Agency, which regulates Freddie Mac, estimates that more than 2 million low-income families did not refinance in 2020 when they could have benefited from it.
Homepoint is offering Refi Possible to homeowners who meet all the following criteria:
- Must have a Freddie Mac-backed mortgage secured by a one-unit, principal residence. Homeowners can determine if Freddie Mac owns their mortgage by visiting Freddie Mac’s Mortgage Loan Lookup Tool.
- Current income at or below 80% of the Area Median Income (AMI) (not the income as of origination of the original loan).
- Must not have missed a mortgage payment in the past six months, and no more than one missed mortgage payment in the past 12 months.
- Must have a mortgage with a loan-to-value ratio up to 97%, a debt-to-income ratio of 65% or less, and a minimum 620 FICO score.
- Original loan was not originated with the following special programs: Freddie Mac Refi Possible, Freddie Mac Relief Refinance, or Freddie Mac Enhanced Relief Refinance.
Homepoint, a subsidiary of Home Point Capital Inc., is the nation’s third-largest wholesale mortgage lender and seventh-largest non-bank mortgage lender. Founded in 2015 and headquartered in Ann Arbor, Homepoint works with a nationwide network of more than 8,000 mortgage broker and correspondent partners with deep knowledge and expertise about the communities and customers they serve.
