Lender will begin accepting applications on June 07
Homepoint has announced that it will start offering Fannie Mae’s new refinance option, RefiNow, on June 07 to make it easier for homeowners to secure a lower rate and save on their monthly mortgage payments.
According to the Federal Housing Finance Agency, more than two million low-income families did not refinance in 2020 when they could have benefitted from it. With the new refi program, homeowners with a Fannie Mae-owned mortgage can lower their interest rate by a minimum of 50-basis points and save at least $50 in monthly mortgage payments.
In addition to RefiNow, Homepoint said it will provide a maximum $500 appraisal credit for borrowers that are not eligible for an appraisal waiver. The company will also waive the 50-basis point adverse market fee for borrowers with loan balances at or below $300,000.
To qualify for RefiNow, borrowers must have:
- A Fannie Mae-backed mortgage secured by a one-unit, principal residence.
- A 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.
- 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 (minimum 660 FICO score for manufactured homes).
“This new refinance program is a huge benefit for the millions of homeowners who were unable to participate in last year’s refi boom, and a key opportunity for mortgage originators to expand their reach and serve more people in their communities,” said Phil Shoemaker, president of originations at Homepoint. “We’re proud that Homepoint is among the first mortgage lenders in the country to make this option available to homeowners through our partnership with independent mortgage brokers and correspondents.”