Northpointe Bank

Northpointe Bank publishes its starting rates online for its 30-year fixed, 15-year fixed, 5-year ARM and construction loans. The company has had higher average home purchase rates than the national average for the past three years. In 2021, its average rate was 0.09% higher than the national average.

Northpointe Bank offers both fixed-rate and adjustable-rate mortgages (ARMs). Most borrowers choose fixed-rate mortgages because the payments are predictable and steady. However, you may consider an ARM in certain circumstances — for instance, to save money in interest if you plan to sell your home in a few years. ARMs often carry low introductory rates for the first few years of the loan.

Northpointe Bank average home purchase rate vs. national average

You can start the application process by visiting Northpointe Bank’s website. Search for loan officers in your state, then click “Apply Now” or “Get Quote.” If you choose to start an application, you’ll need to create an account.

The company will ask for your name, email address and phone number. You’ll also need to enter your Social Security number and birthdate to proceed to the application.

Within the application portal, you may be able to enter other preliminary loan information, like the loan purpose or the estimated down payment. However, you’ll need to speak with a loan officer to complete most of the application and finalize it.

Once your application is submitted, you could receive a preapproval decision fairly quickly.

Northpointe Bank application features

Northpointe Bank offers an extensive selection of loan products tailored to individual borrowers’ needs. Its products include conventional (with fixed or adjustable rates), FHA, VA, USDA and jumbo loans.

Northpointe Bank also provides specialized loan programs for doctors and professionals with student loans, and if you’re looking to build or remodel, there are loans for vacant land, new construction and renovations. The company also offers non-warrantable condo loans and programs for those trying to rebuild their credit.

For the past three years, Northpointe Bank has seen an increase in the number of home purchase applications it has received. In 2021, borrowers initiated 15,020 home purchase applications with the company.

Of those applications, 28 preapprovals were denied, and about 4% (534) of total applications were denied, which is a lower denial rate than the industry as a whole sees (about 8%). Ultimately, about 73% (11,006) of these home purchase loans were closed.

Loan applications for home purchases only by year

Refinancing

For the past two years, the majority of loans Northpointe Bank originated were for refinancing purposes (with refinance loans and cash-out refinances combined). In 2020, about 61% were for refinancing, compared with 50.5% in 2021.

Several other lenders saw an increase in refinancing applications over the past two years. Rates fell to historic lows, so borrowers refinanced to lock in these lower rates and save on their monthly payments. Data from Freddie Mac showed that borrowers who refinanced in the first six months of 2021 were able to save an average of $2,800 annually.

Since 2021, rates have been rising steadily. For this reason, fewer borrowers are expected to refinance this year. You may still consider refinancing, however, even when rates are high. You may qualify for a lower rate today for a variety of reasons, such as an improvement in your credit score or an increase in your equity.

You’ll want to crunch the numbers and compare the total interest costs of your current mortgage with potential interest savings from a refi. You can compare the two options side by side using several online calculators.

Home purchase vs. refinance loans by year

HELOC and home equity loans

Northpointe Bank offers both HELOCs and home equity loans. The company doesn’t provide much information about these options, so you’ll need to contact a loan advisor to learn more.

A home equity loan is best when you need immediate access to a lump sum of cash, like for consolidating debt or funding a home improvement project. A HELOC is better when you’re unsure of exactly how much cash you’ll need but need access to funds consistently for a long period of time. Some borrowers use HELOCs to pay for a child’s college education or make small improvements to their homes.

Remember that both HELOCs and home equity loans are second liens on your home, which means your home is used as collateral. If you aren’t able to make payments, the lender could foreclose on your home.

HELOCs can also be risky because they often carry variable interest rates, which could cause your monthly payments to rise when rates increase. Consider how you’ll use the funds and the loan terms before you decide to use your home’s equity as funding. You can also consult with a loan advisor to review your options.

Northpointe Bank does not disclose its minimum credit score requirements. However, most lenders require a score of at least 620 for a conventional, 500 for FHA, 580 for VA and 640 for USDA loans.

The company does disclose its down payment requirements. You’ll need to offer a higher down payment for a conventional loan (5%) than the 3% down payment option offered by some lenders. With an FHA loan, you’ll need to offer at least 3.5% down if your credit score is above 580. Both VA and USDA loans have no down payment requirements. Note that you’ll also want to figure out how much house you can afford before taking out a loan from Northpointe or any lender.

National mortgage requirements by type

Northpointe also offers jumbo loans.

Northpointe Bank doesn’t list the fees it charges on loan originations. However, many lenders assess an origination fee of about 0.5% to 1% of the total loan amount, which includes charges for the application, underwriting and processing.

Lender fees are part of the overall closing costs. Closing costs usually total between 2% and 5% of the loan amount. This includes prepaid items (like mortgage insurance premiums) and third-party fees (like home appraisal fees).

You’ll receive a list of all potential closing costs after you’re preapproved for a loan. The Loan Estimate outlines these charges ahead of time. You’ll want to compare the Loan Estimate with the Closing Disclosures, which you’ll receive three days before the closing. The Closing Disclosures finalizes these costs.

If you’re concerned about paying for closing costs, Northpointe Bank may be able to direct you to state bond programs that offer closing assistance. You can reach out to a loan advisor for more information and to see if you qualify.