100% financing is still available up to 417,000. But is it a good idea?
Phone is 512-577-2958 | jon@mylendingplace.com
When I started Mylendingplace over 3 years ago, I decided I wanted to do “good loans”. Or Home loans that really helped people move forward toward their overall financial goals. Remember, a mortgage is either a 15-30 year debt instrument or a financial tool. It can be a 30 year debt loan or a tool to bigger, better things like getting out of debt, saving for college, retirement.
Any licensed mortgage person can do a home loan, it’s how the mortgage is constructed or designed that’s important. In this post, let’s explore the question “how much is the right amount to put down on a home.”
Let’s compare the following: 80/20 loans (100% financing) or 10% down home loans. Read the rest of this entry »
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Ways to reduce the closing costs associated with your home loan:
Let’s talk about closing costs that are associated with any home loan. Most people only think in terms of the loan’s interest rate, but there are other costs to consider when getting a mortgage.
1) The Cost of the money; AKA the interest rate.
2) The Cost to get the rate ; AKA closing costs. Read the rest of this entry »
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Texas has weird home equity loan rules:
80% Maximum Home Equity Rule: This means your home equity loan can’t exceed 80% of your home’s value. So if your home is worth $150,000, your Texas Home equity loan can’t exceed 80% or $120,000. (Investment home equity loans guidelines are less strict. You can pull more equity out of an investment property; up to 85-90% depending on your credit.)
3% Finance fee limit: The total fees charged by everyone (lender, underwriter, bank, title, attorneys, etc) can’t exceed 3% of the loan amount. Most home refinances require a title policy which will run between 0.75-1% of your loan amount. The 3% rule is supposed to curb excessive fees, but in realty, it makes it harder for people with smaller home values to get access their equity. We at mylendingplace have some bank programs that will pay your closing costs; allowing you to net more. Naturally, these rates are slightly higher. Read the rest of this entry »
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Austin Home mortgage Financing up to $417,000 still available
Fannie Mae and Freddie Mac both introduced no-money-down options some time ago, with the interest rates on such products being slightly higher than for those that have down payments. The difference in rate for a 30-year fixed loan with 5 percent down and one with no money down usually varies by about .5 percent. And being Fannie and Freddie loans most every lender on the planet offers them.
The difference in payment on a $200,000 loan would be about $65 per month. Not a lot, but certainly something to consider. That $65 can add up over several years, so many might hesitate to take a zero-down loan. Perhaps sit this one out and save up some money or get a grant or a cash gift from a well-to-do family member. Not bad work if you can get it. But if you’re convinced that rates will soon move up much more than .5 percent on their own then in fact it might be something to consider.
Email Jon Spears at jon@mylendingplace.com. Or call our office at 577-2958.
Or if you’d like to apply for a zero-down home loan: (secure website) https://mylendingplace.securesites.net/application/
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