Newrez LLC, a national mortgage lending and servicing organization, has upgraded its Smart Series non-qualified mortgage (Non-QM) product lineup with the launch of its 40-year fixed-rate interest-only (IO) option.
Newrez’s 40-Year IO option is designed to increase purchasing power for homebuyers by offering a 40-year loan term with interest-only payments for the first 10 years. Developed for borrowers and investors that have been priced out of today’s housing market, the option allows borrowers to have more affordable monthly payments by offering a longer loan term.
The 40-Year IO option applies to all Smart Series Non-QM products and is now available across each of the company’s lending channels (retail, wholesale, correspondent, joint venture and direct to consumer).
The Smart Series Non-QM products afford non-traditional borrowers the opportunity to buy their homes at fair price points through expanded guidelines, as it prioritizes product development efforts for borrowers whose needs are often overlooked by other non-agency products.
“We are continually enhancing and updating our Smart Series products to ensure we are providing competitive Non-QM financing options for our clients in current market conditions,” says Jeff Gravelle, co-head of production at Newrez. “Our Smart Series products, like the 40-year IO, are developed to meet the needs of today’s borrowers and open the door to thousands of prospective homeowners.”