Dick Graves
01-12-2003, 10:45 AM
Great idea Steve. Thought I would post some information on two different loan programs.
Any viewers have a JUMBO mortgage under the old rates? If so and your loan balance is under $320,000.00 you should contact your lender. They have raised the ceiling to $320,700.00.
Bottom line if you are paying JUMBO rates and your balance is less then the above figure, you should consider a refinance, your rate may drop as much as one full percentage point, the savings would be considerable.
Anyone thinking about buying a new home and you are worried about paying PMI (private mortgage insurance), which is required if you are paying less then 20% down, should consider a first and second mortgage. Most of these programs require very good credit, meaning credit scores above 680.
An example, $200,000 purchase price, 5% down, would require PMI of about $152.00 per month. This is money that is "pissed into the wind", pardon the harsh description. In other words it goes into someones pocket and not toward your loan balance.
How to avoid PMI, take a first mortgage for 79% of the loan and a second for 16%. Results two house payments, but NO PMI. I like this idea and we have several investors that offer this program. This will also work on refinace of your existing home.
Any questions, feel free to call me at 586-263-8500 Ext. 13 or send me an e-mail with your questions richard@firstcapitalcorp.com
:confused:
Thanks,
Dick
Any viewers have a JUMBO mortgage under the old rates? If so and your loan balance is under $320,000.00 you should contact your lender. They have raised the ceiling to $320,700.00.
Bottom line if you are paying JUMBO rates and your balance is less then the above figure, you should consider a refinance, your rate may drop as much as one full percentage point, the savings would be considerable.
Anyone thinking about buying a new home and you are worried about paying PMI (private mortgage insurance), which is required if you are paying less then 20% down, should consider a first and second mortgage. Most of these programs require very good credit, meaning credit scores above 680.
An example, $200,000 purchase price, 5% down, would require PMI of about $152.00 per month. This is money that is "pissed into the wind", pardon the harsh description. In other words it goes into someones pocket and not toward your loan balance.
How to avoid PMI, take a first mortgage for 79% of the loan and a second for 16%. Results two house payments, but NO PMI. I like this idea and we have several investors that offer this program. This will also work on refinace of your existing home.
Any questions, feel free to call me at 586-263-8500 Ext. 13 or send me an e-mail with your questions richard@firstcapitalcorp.com
:confused:
Thanks,
Dick