Anyone have any customers that were pre-approved at a certain sales price and had rising interest rates throw a wrench into that number?
How about a client waiting on short sale approval to find out they are no longer approved because of the recent spike with rates? I may have a loan that could help save the day.
Buyers that take out traditional Conventional (Fannie and Freddie) loans where they put down less than 20% require PMI (Private Mortgage Insurance). Depending on the down payment and the borrower’s credit scores this monthly amount will vary. On average a loan amount of about $150,000 could carry close to $100 a month or more in payments directly to the these PMI companies.
We offer a one-time upfront PMI charge option in lieu of monthly payments. The charge for this can be paid by the buyer or paid for by the seller as part of seller concessions. This amount of the upfront premium depends on the borrowers scores but is typically anywhere between 2 -3% of the loan amount. Buyers and Sellers can negotiate purchase price as well to cover the charge.
We have seen Mortgage Interest Rates increase by about 1 % recently. That 1 % increase on that same $150,000 loan amount increases their payment by about $90. So you can see by utilizing this no monthly PMI option you can essentially keep their payment to where it was about a month ago prior to the rate increases.
If you have any questions regarding this program or others please do not hesitate to give me a call anytime at (815)621-9888, visit me on the web at www.mike-scalise.com or email me at firstname.lastname@example.org
Thank you and lets make 2013 great! – Mike Scalise NMLS #207383