30 Year Fixed Rate Loan at a Cost of One Point: 3.99%

30 Year Fixed Rate Loan at a Cost of One Point: 3.99%*

We held off on our commentary because rates started to improve about 10 A.M. this morning, and we wanted to see where they settled before quoting anything. This happens very often because the market is so volatile (jittery) right now.

As we remind borrowers often, rate quotes are only valid for short periods. If a borrower likes a rate, he or she should lock immediately.

Investment Property Financing remains competitive as ever. A $400,000 Investment Property Loan at 80% LTV is at 4.875% at a cost of One Point (APR is about 0.20% higher). A 75% LTV Investment Property Loan is at 4.5% at a cost of One Point (APR is about 0.20% higher). We also now offer Investment Property Loans to 85% LTV with Mortgage Insurance.

Borrowers ask if they should get Conventional Financing instead of Hard Money if they intend to “Flip” a property. We always suggest Conventional Financing IF the property is in decent condition and if the borrower can qualify. Conventional Financing is more work, but a borrower can save as much as $20,000 (on a $400,000 loan) in fees and interest with Conventional Financing in lieu of Hard Money Financing.
*The above rate quote has the following assumptions: $400,000 Loan Amount; 20% down payment; credit score above 740; property is SFR; borrower has sufficient income to qualify; APR is approximately 0.20% higher than quoted rate for a $400,000 loan. Estimated closing costs affecting the APR include $4,595 for Origination and Processing Fees, $850 for other Lender Fees; $1,400 for Escrow Fees, and $1,000 for Prepaid Interest.

Call Jay Voorhees or Heejin Kim at (925) 855-4491

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