30 Year Fixed Rate Loan at a Cost of One Point: 3.375%*
Rates improved again because of weak manufacturing numbers and lackluster employment figures.
Many borrowers have more income than they realize because we can add back “non-cash items” or tax deductible expenses that never actually came out of a borrower’s pocket. These expenses are usually depreciation and amortization. Borrowers with any type of hard assets or real estate (or partnerships or corporations with hard assets or real estate) often have substantial depreciation expenses that we can add back to make debt ratios work.
We can also add back home mortgage expenses, car expenses (if a borrower’s business is deducting the car payment), and “one-time” casualty and capital losses.
Tax returns are often very long and complicated, and knowing how to extract every dollar of income is one of the reasons why it takes so much expertise to qualify a borrower nowadays.
*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
Real Estate Broker, CA Dept of Real Estate, DRE# 01524255, NMLS# 335646