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.|
The real estate market is constantly changing, leading to many challenges for buyers and sellers alike. Never has there been a greater opportunity to leverage innovative lending solutions to better serve your clients. As you know we think outside of the box. Yes we do lots of loans that fit in the box, but getting the deals done that don’t fit in the box can make all the difference in this market. During this class we will cover some more unique loan programs and ways to structure transactions to help get offers accepted in an unconventional world. This class is approved for 1 hour of continuing education thank you Devon Title for sponsoring the continuing education portion of this event!
Here is a list of some of the things we will cover during the event: