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HomeOne® Rate-and-Term Refinance

Best For: Limited Equity, Rate Reduction, Easy Process

HomeOne® from Freddie Mac allows for a 97% LTV refinance—so those with limited equity can refinance to a lower rate or different term.

HomeOne® Rate-and-Term Refinance

  • Introduction
  • Quick Facts
  • Pros & Cons
  • Availability
  • Occupancy & Property Type
  • Income & Purchase Price Limits
  • Key Features & Conditions
  • Other Limitations
  • Mortgage Insurance & Fees
  • Similar Loan Programs
  • Related Resources

Program Description

This program allows for current Freddie Mac mortgage holders to refinance with high LTV (loan to value) ratios, even if there is very little equity in the home (as little as 3%). Designed to help homeowners refinance into a lower monthly mortgage payment, lower rate, and/or shorter terms while continuing to enjoy all the benefits of their conventional mortgage.

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Condominium Options
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Our loanSMART system will tell you if this loan program is a good fit your scenario.

HomeOne® Rate-and-Term Refinance

Min. Credit Score

620

Min. Equity

3%

Max Loan Amount

$726,200

Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.

Pros & Cons
  • Refinance with as little as 3% equity in your current home
  • No income or home value limits
  • No funding fee or permanent mortgage insurance
  • May be combined with down payment assistance programs
  • No property location restrictions
  • No high-balance loan program available in high-cost areas
  • Only available for 1-unit primary residences
  • Only available to current Freddie Mac mortgage holders
  • No manufactured homes allowed
Program Availability

HomeOne® Rate-and-Term Refinances are available in all 50 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands.

Talk to an Expert

An RMM PROLender can help you see if this or a different loan program is the right fit for your unique situation. Get Started.

“Good News! You can utilize this type of refinance to take advantage of shorter terms and build equity in your home faster."

Occupancy & Property Types

Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.

Occupancy Types

Available Property Types for Primary Residence
Income & Purchase Price Limits

Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.

Debt-to-Income Limit

50.00%

Purchase Price Limit

No Limits

Income Limit

No Limits

Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.

Refinancing?

Answer a few short questions and we'll build you a custom list of home loan program options. You're homeownership journey is in good hands.

Key Features
  • First Time Home Buyer Program
  • 3% Conventional Mortgage
  • Offered through Freddie Mac
Additional Conditions
  • Existing loan being refinanced must be owned (or securitized) by Freddie Mac
  • All borrowers must occupy the property as their primary residence
Other Limitations

In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.

No other program limitations

A Homebuyer Education Class is not required for this loan program.

Mortgage Insurance & Fees

Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.

Mortgage Insurance
Required with less than 20% Down Payment
Type: Private Mortgage Insurance (PMI)

This program requires Private Mortgage Insurance (PMI) if you are putting down less than 20% on the home you are purchasing or refinancing.

Funding Fee
Type: No Funding Fee

This program does not have a funding fee.

Annual Fee
Type: No Annual Fee

This program does not have an annual fee.

Estimated Closing Costs: 2%

These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.

Similar Loan Programs

If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.

Conventional Rate-and-Term Refinance

Best For: Flexible Terms, Rate Reduction, Easy Process

Popular refinancing option for loan amounts under the conforming loan limit. Flexible qualification and attractive benefits to qualified homeowners.


Details
Conventional High-Balance Rate-and-Term Refinance

Best For: Large Loan Amounts, Lowest Rates, Easy Process

Conventional refinancing above the conforming limit in high cost counties with flexible qualification for qualified homeowners.


Details
Refi Possible℠ Refinance

Best For: Rate Reduction, Easy Process

A simpler and more affordable way to refinance your existing home loan to a lower rate or shorter loan term.


Details
Home Possible® Refinance

Best For: Low Credit Scores, Lowest Rates

Low equity refinancing from Freddie Mac with discounted fees for creditworthy low and moderate income borrowers across the US.


Details
FHA High-Balance Rate-and-Term Refinance

Best For: Large Loan Amounts, Easy Qualification

FHA refinancing above the standard FHA loan limit in high cost counties with easier qualification and typically lower rates than conventional.


Details
FHA Rate-and-Term Refinance

Best For: Rate Reduction, Low Credit Scores, Easy Process

Reduce your interest rate, change your terms, or lower your mortgage insurance obligation with limited home equity and an easier process.


Details
CHOICERenovation® High-Balance Refinance

Best For: Large Loan Amounts, Home Renovations

Refinance above the conforming loan limits with funds for home improvements and repairs with this convenient and flexible renovation loan program.


Details
VA Rate-and-Term Refinance

Best For: Rate Reduction, Lowest Rates

Refinance to a lower VA mortgage rate or change your term (length) with limited closing costs and no private mortgage insurance.


Details
HomeOne® Purchase Loan

Best For: First Time Homebuyers, Easy Process

A low down payment solution to help first time homebuyers with limited savings take advantage of the benefits of a conventional loan program.


Details
CHOICERenovation® Refinance

Best For: Savvy Investors, Home Renovations

Refinance with funds for home improvements and repairs with this convenient and flexible program for renovations from Freddie Mac.


Details
Related Resources
2023 Down Payment Assistance Guide

Unless you're related to a dragon or leprechaun with a hoard of gold stashed away somewhere, chances are you are like one of the other 87% of homebuyers who need to finance their home purchase.

Read More
A Rundown On Closing Costs and How They Affect You

It can be tricky to sift through all the figures , so we broke down what they are, how much they cost, who's responsible and how to minimize your expenses.

Read More

Visit our Mortgage Education Center for more resources.

* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers

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