Thursday, December 18, 2014

Are 3% Down Mortgage Best for You?

3% down conventional mortgages with a 620 credit score are here!  But does that mean that they will be the best and cheapest loan for everyone? Absolutely not!

These new loans are conventional (non-government) loans, and the interest rate a borrower pays depends on their credit scores.  Generally speaking, if someone has a credit score below 720, the new 3% down conventional loans will be more expensive than an FHA loan.  

The difference in down payment between these new loans and FHA loans is only 0.5% of the purchase price.  FHA requires a 3.5% down payment. For a $200,000 loan, the difference in down payment is only $1,000 between a 3% down conventional loan and a 3.5% down FHA loan.

One big advantage of the 3% down conventional loans is that the mortgage insurance goes away once the borrower has 22% equity in the house.  With an FHA loan, the mortgage insurance never goes away, unless the borrower puts 10% down.

Our advice?  Have us price the loan both ways: as a 3% down conventional loan, and also as a 3.5% down FHA loan.  Look at the difference in payments, and look at how much the mortgage insurance will cost.  Our job is to make sure you have the best possible mortgage.  When you use us as your lender, you have a direct contact with experts in the mortgage industry.  We'll make sure you get the best possible mortgage.

Every time we close a loan, we make a donation to the Rocky Mountain MicroFinance Institute (RMMFI).  We do that because RMMFI gives aspiring entrepreneurs the training and funding needed to start a business and achieve self-sufficiency.  If you think supporting local entrepreneurs makes the Denver area a better place to live, patronize these local businesses.  Here's a link to some of the businesses that RMMFI has helped launch:

Conventional financing is still available for houses that have been owned by the seller for less than 90 days.

Did you know that we do NOT charge an origination fee or an underwriting fee?  Our only lender fee is a $500 processing fee. 

Did you know that we don't have any underwriting overlays on the loans we sell?  That means we have no additional underwriting guidelines like most lenders have.  Pretty nice!

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

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