813.910.8020 Apply Now

Mortgage Broker Tampa, FL | Mortgage Lender Tampa Florida | Marimark Mortgage

  • Home
  • Homebuyers
  • Homeowners
  • Realtors
  • Investors
  • About Marimark
  • Contact Us
  • Mortgages
  • Apply Now
  • Current Mortgage Rates
  • Calculators
  • Testimonials
  • Blog
  • Videos
  • Featured In
Home / Blog / Mortgages / Affordable Merit Rate Mortgages

Affordable Merit Rate Mortgages

June 25, 2016 By Mary Catchur

Affordable Merit Rate MortgagesA poor credit rating is perhaps the biggest obstacle to getting a mortgage to purchase a new home.  And even if a homebuyer with a low FICO score qualifies for a home loan, the mortgage has a higher interest rate. Thankfully, Freddie Mac offers Affordable Merit Rate Mortgages.

Affordable Merit Rate Mortgages give homebuyers with a low credit score the chance to qualify for a home loan, while also earning the right to pay a lower interest rate.

Affordable Merit Rate Mortgages

The Affordable Merit Rate Mortgage is a subprime loan offered by Freddie Mac aimed at benefiting homebuyers with a poor credit history.

With an Affordable Merit Rate Mortgage, borrowers have a four-year period to make 24 consecutive on-time mortgage payments in order to qualify for a one-time, one percent interest rate reduction.

If borrowers are late on one or more mortgage payments during the first 24 months, they will be re-evaluated on the 36- and/or 48-month anniversaries of the payment due date. Borrowers who meet the eligibility requirements will automatically receive the one-time rate reduction effective the month following the eligible anniversary date.

Borrowers Benefit from Affordable Merit Rate Mortgages

The benefits to borrowers of the Affordable Merit Rate Mortgage, as stated by Freddie Mac, include:

  • Delivers home financing at a rate that may be lower than other higher-cost financing options.
  • Provides an additional rate reduction incentive for on-time payments that reduces the need to refinance and incur associated costs.
  • Helps establish a record of good credit management.

Of course, the biggest benefit is the possibility for the interest rate to be lowered by a full percentage point.  A borrower with a 30-year fixed rate mortgage that is lowered 1%, can expect his monthly payment to decrease by well over $100 per month.

Lenders Benefit from Affordable Merit Rate Mortgages

From a lender’s perspective, there are a number of great reasons to work with borrowers and suggest an Affordable Merit Rate Mortgage.  This loan type allows lenders to approve more buyers, retain more buyers due to the automatic rate reduction, and expand into working with borrowers with less-than-perfect credit.

The benefits to lenders of the Affordable Merit Rate Mortgage, as stated by Freddie Mac, include:

  • Qualify more borrowers with a less-than-perfect credit history.
  • Retain more customers in your servicing portfolio with the rate reduction incentive.
  • Use Loan Prospector to reduce costs, streamline your origination process, standardize your product line and obtain creditworthiness representation and warranty relief.
  • Further expand your A-minus marketing efforts to an additional borrower base.

Qualifying for an Affordable Merit Rate Mortgage

As a borrower, you won’t need a perfect credit score to qualify for an Affordable Merit Rate Mortgage, but Freddie Mac has specific guidelines that must be met.

To see if you qualify, contact a mortgage broker to review your finances and determine whether you qualify for an Affordable Merit Rate Mortgage.

Marimark Mortgage

Marimark Mortgage is a mortgage broker serving all of Florida, Virginia, and Pennsylvania.

We also specialize in conventional home mortgages, FHA, VA and USDA mortgage options, refinance loans, and reverse mortgages. We’ve also worked extensively with a variety of refinancing options to help clients lower their payments on their home.

To get started with a mortgage to buy your next home, please fill out our Quick Mortgage Application, or contact us direct.

Opt In Image
Stay Informed, It's Your Money
Marimark Mortgage Newsletter

The Marimark Mortgage Newsletter will keep you informed with important events in the mortgage industry that could impact your finances.

We especially focus on ways to save money on your current and future mortgages. And, we continually share the information we share with our clients, because we believe informed consumers are the best consumers.

Real estate agents, and other professionals in the industry, will receive an ongoing wealth of information that will help them serve their clients.

Thank you for signing up!

Filed Under: Mortgages Tagged With: Affordable Merit Rate Mortgage

Opinions, estimates, forecasts and other views contained in this page do not necessarily represent the views of Marimark Mortgage or its management and should not be construed as an offer to provide financing at the rates or terms mentioned. Due to market fluctuations, interest rates are subject to change at any time and without notice. Interest rates are also subject to credit and property approval. Although Marimark Mortgage attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. Information from this page may be used with proper attribution.

Save with a Mortgage from Marimark

Whether you are buying a home or refinancing, you can save with a mortgage from Marimark Mortgage!

    Search

    Post Categories

    Testimonials

    Refinancing with Mary an absolute pleasure

     
    Refinancing with Mary has been an absolute pleasure. I have never been through the process before and she took the time to explain each step. She was prompt (had a rate locked in right away) and most importantly always answered the phone or emails almost immediately! The communication line alone made the refinancing process every bit worth it. Would recommend to anyone, and will be back for any future purchases! Bret Brennan, March 2021
    See More Reviews
    Marimark Mortgage LLC
    5327 Primrose Lake Circle
    Tampa, FL 33647-1328
    (813) 910-8020
    (866) 910-8020

    Accessibility
    Privacy Policy
    Terms of Service
    Sitemap

    Reviews

    Website Testimonials
    Google Reviews
    Zillow Reviews
    Trulia Reviews
    Facebook Reviews
    Yelp Reviews
    BBB A+ Rating

    FOLLOW US

    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    Marimark Mortgage is a BBB A+ Accredited Business

    Recent Posts

    • FHA Announced a 30-Basis Point Reduction to Annual Mortgage Insurance Premiums
    • How Can You Improve Your Credit Score?
    • Historical Mortgage Rates From The 1970s
    • What You Need to Know About Mortgage Forbearance
    • Top Tips to Save Money for a Down Payment

    © 2023 Marimark Mortgage, LLC All Rights Reserved. | Internet Marketing by Image Building Media. | RSS Feed

    Reviews / Recommendations: Google, Zillow, Trulia, LinkedIn, Facebook, Yelp, BBB

    Licensed in Florida by the Office of Financial Regulation, Mortgage Lender License #MLD77.
    Licensed in Virginia by the Virginia State Corporation Commission, License MC#4556.
    Licensed in Pennsylvania by the Department of Banking and Securities, License #40222.
    NMLS#248318 – www.nmlsconsumeraccess.org.