I was going over loan options with a home buyer the other day and realized that we spend a lot of time talking about mortgage insurance and when comparing loan programs for people the cost of the PMI really comes into play. When I sat down to make this video I was simply going to go over the basic options and the costs associated with each. The video turned into more of a why not to get a FHA loan, which wasn’t my intent. However, the numbers don’t lie FHA is the most expensive loan out there right now. Its the new “subprime” funny that the government loan program who’s mission statement reads: “HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all . . . “ is the most costly of all the home financing options. Anyways, we close tons of FHA loans and it is often the only option for people wanting to buy now; so enough said. The chart outlines the basic’s reach out to me anytime with questions.
|% Down||3.5% Down||Zero Down||Zero Down|
|Mortgage Insurance Rate Per Year||5%||0.62%||1.35%||0.50%||zero|
|Upfront Mortgage Insurance (Rolled into the loan)||zero as depicted here. Optional. Call for details.||1.75%||2%||2.15%|
|Example: $150,000 loan Monthly/Upfront||5%||$77 per month||$169 per month / $2,625 upfront||$62 per month / $3,000 upfront||$3,225 upfront|
|10%||$55 per month|
|15%||$33 per month|
|Monthly MI Drops Off||All 78% Loan To Value||Never||Never||N/A|
|Mortgage insurance rates vary based on credit core, down payment, occupancy, loan term, etc… This chart gives an example for comparison, but doesn’t guarantee any particular rate or mortgage loan approval. Call (269) 598-3975 for details and a quote specific to your situation.|
One of the biggest myths out there is that you need a bunch of money to buy a house. That’s simply not true. There are a number of No and Low down payment options for home buyers. On top of that you don’t have to be a first time home buyer to access many of those programs. During our next lunch and learn we will cover all the different options out there for buyers looking to minimize their down payment. Over the last couple years its been harder to get a lot of these types of offers accepted. However, with the market going back to a much more “normal” state it’s not nearly as hard as it was just a few short months ago. This is the perfect time for Realtors to reconnect with their past customers and get back out there looking. Come check out this lunch and learn and get a refresh course on low down payment options for buyers!
Here is a list of some of the things we will cover during the event:Visit Jeremy's Blog