Grab A Loan That Saves You Money!

Homepath mortgage financing is the mortgage vehicle that is available to REO foreclosure buyer’s of Fannie Mae homes. There are thousands of REO foreclosures available nationwide through Fannie Mae and a Homepath mortgage is a really great mortgage with extememly low fees, low rates, and very lenient qualification terms. Check this stuff out:

• Low Down Payments

If you’re looking to buy a primary residence to live in you’ll need only a 3% down payment to qualify for a Homepath mortgage. You’ll need a 10% down payment for an investment property.

• You’re Not Disqualified If You Already Own A Home

You can already have a mortgage on ten homes and still qualify for a Homepath mortgage. You’ll need a 25% down payment though if you already are financed on four properties or more. This is great news for investors!

• No Appraisal Is Required

An appraisal is not needed for a Homepath mortgage. If you’re concerned about an appraisal coming in a little low you probably shouldn’t be paying that much for the property anyway. Be careful here. If your serious about making an investment, consider getting your own appraisal just to be on the safe side.

• PMI or Private Mortgage Insurance Is Not Required

This is a great advantage to a Homepath mortgage! Depending on the value of the home you can end up making an insurance payment every month that will cost you anywhere from $20 a month to hundreds. You wont run into this added insurance expense with Homepath.

• Jumbo or High Balance Mortgages Available

Sometimes with a mortgage that is as flexible as a Homepath mortgage you can’t get larger loans.

• Sellers Can Contribute To The Mortgage (Seller’s Concessions)

Another great advantage of a Homepath mortgage! The amount that the seller can contribute varies. It depends on how large your down payment is. Sellers can only contribute 2% on an investment property.

• Disadvantage – Rates Are Higher Than 30 Year Conventional

You can buy discount points to bring down your rate to the national average 30 year conventional mortgage rate. Remember that you wont be paying private mortgage insurance. Depending on the size of your loan and your down payment you may actually break even though on the monthly payment when you factor in the lack of PMI and seller’s concessions.

Add the Homepath mortgage to your list of options. I think you’ll like what you find.

Pay Off Your Mortgage 5 Years Sooner To Save Even More

It’s amazing just how much lenders rates have dropped and how you can tweak a refinance to save tens of thousands more than anyone else in Stratford.

It’s exciting for all those homeowners here in Stratford to be able to refinancetheir mortgage rates at a lower rate. Here’s the kicker though, I don’t want you to refinance just to get a lower monthly payment.

OK, that’s not entirely true. There are two circumstance that should be refinanced. If you are still in an adjustable rate mortgage you should refinance or if you are having cash flow problems and saving a couple hundred dollars a month will help than you should refinance. Otherwise I want you to think about refinancing in a completely different way.

How I Think You Should Think About Refinancing

As you already know I like to go about things a little differently. I like the common sense approach to lending over the emotional approaching to lending.

Consider this. Instead of trying to decrease your monthly payment try to decrease the length of your loan.

Let’s use an example. Lets say you have 25 years left on your mortgage and are currently paying an interest rate of 6%. If you can refinance into a 20 year loan at a very possible 5.2% in today interest rate climate than you will save $175,000 in interest by refinancing.

You’ll pay off your mortgage five years sooner and save $175,000 in interest payments without changing your monthly payment. Sounds good to me.

Do you have any ideas like this that are not quite as main stream in regards to refinancing? I’d love to hear them so I could share them with my subscribers. Leave us a comment below to share your ideas.