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Why You Should Hire a Professional

08-31-2018

Written by Lisa Mazzei - Loan Officer

With interest rates on the rise, many potential consumers feel the need to shop around more aggressively for their home financing needs.  Or, worse still, think they should “do their research” online before even getting with a Mortgage Professional.
 
This brings to mind a favorite quote of mine by Red Adair:  “If you think it’s expensive to hire a professional to do the job, wait until you hire an amateur.”  We in the lending industry are the professionals.  Not Google.  Not Wikipedia.  Not your clients’ parents who last purchased a home 20 years ago.  It’s our JOB!
 
A great example of this is from a recent referral I received.  What most people believe is you must put 20% down to purchase a home.  While that’s not true, most people also believe that you should put 20% down to get better interest rates.  In today’s lending environment, that is ALSO not true!  Consider the example below.  These buyers can keep more money in their pocket with the same payments and a lower interest rate – even with the dreaded “PMI”.  So when your buyers say they have it all figured out, but they haven’t yet met with a lender?  Or they spent 8 minutes to get pre-qualified online?  Listen to good ol’ Red and refer them to a local Mortgage Professional!

 

Sales Price $375,000
20% Down $75,000
Closing Fees $15,000
Cash to Close $90,000
Interest Rate 5.125%
Monthly Payment $2,111.29

*Payments include principal and interest of $1633.46, insurance estimated at $87.20, property tax estimated at $390.63.  Total estimated payment is $2,111.29.  Rates as of 7/26/18.  Minimum FICO score of 620. 

 

Sales Price $375,000
19% Down $71,250
Closing Fees $14,750
Cash to Close $86,000
Interest Rate 4.75%
Monthly Payment $2,111.81

*Payments include principal and interest of $1584.50, insurance estimated at $84.18, property tax estimated at $390.63, mortgage insurance $52.50.  Total estimated payment is $2,111.81.  Rates as of 7/26/18.  Minimum FICO score of 620.

 

Sales Price $375,000
15% Down $56,250
Closing Fees $14,750
Cash to Close $71,000
Interest Rate 4.75%
Monthly Payment $2,196.82

*Payments include principal and interest of $1662.75, insurance estimated at $87.66, property tax estimated at $390.63, mortgage insurance $55.78.  Total estimated payment is $2,196.82.   Rates as of 7/26/18.  Minimum FICO score of 620.

 

This communication is for informational purposes only; this is not a commitment to lend.  All loans are subject to buyer and property qualification.  All programs, rates and fees are subject to change or cancelation at any time and without notice.  Contact Summit Funding, Inc. to learn more about mortgage products and your eligibility.



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