Buyer Gets Better Home Loan Rate & Lower Cash to Close
Nate Jennison gives a quick recap on a home loan rate we closed at a lower interest rate and less cash to close. ? How? ? We’re an independent mortgage broker = we have 40+ end investors competing for every loan.
Nathan Jennison: We had a customer that came to us, they were under contract and they had a lender. One of their friends said, “Hey, Nathan Mortgage, they might be able to help you out. You might be able to get a better deal.” They called us up and I want to show you what they had when they came to us. They’d gotten this loan estimate and as you can see this is an FHA loan. What we were able to do for them was an FHA loan as well.
Nathan Jennison: They gave him four scenarios here. And if you look the best one, as far as interest rate goes, is this top one right here at 3.49%. That goes all the way up to 4.75% for an FHA loan. Now, when you’re looking at this, the most important thing that I really want to pull out here is points. So as you can see, for 3.49%. This customer was going to have to pay $12,874 to buy down the rate to 3.49. Further up. Once they get to 4.75 they don’t have to pay any points. That’s significant. The other thing to notice is down here where it says cash to close. $35,000 is what they’re going to need for cash to close. And that is after their earnest money had been applied.
Nathan Jennison: Let’s see what we were able to do for them. We were able to get them 3.125%. That is significantly different than 3.49. The other thing that’s important to notice is there’s no points. They weren’t having to pay anything in points. So we got them 3.125% without having to pay anything extra. Bottom line cash to close $31,236.
Today’s Interest Rates
Note: We often have rates even better than what is posted here depending on the qualifications of the borrower. It’s a reference point but not reflective of our best pricing.View Home Loan Rates
Nathan Jennison: And that’s not counting earnest money. So any earnest money that this customer put down, which was $10,000 gets taken out of that. So their cash to close is $21,000 as opposed to $35,108. If you’re a realtor, feel free to send your customers to us. Even just give us a call and say, Hey, what could you do with this sort of scenario? We’re happy to price that out for you.
About Nathan Mortgage
Nathan Mortgage, an independent mortgage broker, provides an alternative to traditional banking that is more straightforward and approachable. Loan offerings are not commission-driven, and customers enjoy unbiased advice and support. Nathan Mortgage is committed to the local community through sponsorships and loan offerings that are accessible to more borrowers. Nathan Mortgage serves Colorado, Florida, Illinois, Tennesse, and Texas home buyers with offices in Lakewood, Colorado and Burr Ridge, IL.