Photo by:  Pierre-Olivier Bourgeois

Should you consider financing closing costs, escrow reserves, or other cash needed at closing?

The first question we ask is, “How long do you expect to keep this mortgage?”  We will then determine a break even period for you.  That will tell us how many years (to the month) it will takes to break even for paying more money at closing to obtain a lower rate.

When you have less than 20% down, we like to help our customers put their cash where it will pay them back the greatest reward.  That is first through a lower LTV at the levels where PMI drops.  We don’t like to see you pay any more PMI than is needed.  We will ask how much cash you are working with and help you structure not only the mortgage, but even the sales/offer price and terms.  It is best to speak to us before you make an offer on a home.  Our goal is to be creative and save you money so you will come back to us again and again as our customers do.  We can provide more than just a simple mortgage.  Our expertise helps first time home buyers in unimaginable ways.  Just a few minutes ago a first time buyer was so thankful she was brought to tears.  She is in love with a house and didn’t think she could make it work.  Other lenders shot her down for various reasons.  Her credit was a little blemished and she only had a $7,000 dollars available.  She wanted to buy a $150,000 house.  After a few calls back and forth, requesting some letters on the non-medical collection accounts that were paid off, we put together a loan package for her. She could leave other collections unpaid.

With refinancing, many people find that it’s advantageous to pay the cash needed at closing from checking, savings or money market accounts or from other assets. This is because the less you borrow on the new refinanced loan, the lower your monthly payment will be. But we’ll work with you to see if there is an advantageous refinancing program for you based on your ability and willingness to pay closing costs and other fees and the amount you wish to borrow.

We want to make the best loan for you, work for you!

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