Do you want to lower your interest rate but have little equity in your home? Every day I talk to people who believe they can’t lower their interest rate because they have little or no equity in their home. Or they think that refinancing over 80% loan to value will result in paying mortgage insurance. It’s unfortunate because it’s not true. There are several loan programs that allow for a refinance even if you are upside down.
Our most popular loan only requires only 5% equity in order to qualify for a conventional loan with NO Mortgage Insurance. This loan has helped hundreds of our clients save money each month and tens of thousands in just the first 5 and 10 years.
This loan is also available for purchases. With a limited 5% down payment you can qualify for NO Mortgage Insurance. The benefit is you either get a lower payment when compared to other low down payment options, or you increase your purchasing power.
Check out this example of how a client recently saved $282/ month when she refinanced her FHA loan that she had used to purchase her house in 2009.
Using the same loan parameters as the previous example which was a 250,000 FHA purchase in 2009. If our client chose to refinance into a 20 year loan so she could get to her debt free retirement age faster. Her payment would increase by only $22 and she would save over $102,000 in interest by eliminating 8 years of payments. Check out the example below.
How does this loan work?
The loan is a conventional loan however instead of the homeowner paying monthly mortgage insurance the lender pays what’s called LPMI or Lender Paid Mortgage Insurance. Our loan is good on Mortgages in South Carolina all the way to Califonria.
For example a loan with MI may have a rate of 4.25% while the Lender Paid option will have a rate of 4.5%. In a sense you are buying out the Mortgage Insurance with that premium on the rate. The end result is a lower payment because you avoid paying the expensive Mortgage Insurance each month.
Another huge benefit to our NO Mortgage Insurance loan is it helps people qualify more easily because the lower payment also decreases their debt to income. Debt to income ratios are a big deciding factor when qualifying for a loan.
What if you have a conventional loan without Mortgage Insurance now?
If you have a loan without Mortgage Insurance you can still save. Interest rates are at record lows. Currently we are offering interest rates near 4% with NO points.
You can save in different ways. Most of our clients these days are opting to pay their loans off faster by reducing the term. In many cases they are able to shave off 5 to 10 years of payments and still save money each month. Give us a call for a no hassle quote and see if you can save money today 843-388-5763. Or you can fill out an application online by clicking HERE.