Tag Archive for: lender credits

What Are The Average Closing Costs in California?

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Closing costs are the various fees and charges buyers face when buying a home that are required in order to close on a loan. But what are the average closing costs in California? Closing costs typically run between 2% and 5% of the home’s purchase price for homebuyers in California. However, many closing costs vary with the price of the home or the loan amount.Read More

Repair Credits After a Home Inspection: Complete Buyer’s Guide

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After a home inspection, buyers have a few options: ask the seller to make repairs, walk away, or negotiate a repair credit. On the surface, a repair credit sounds straightforward, […]Read More

Sellers Can Pay For Lump Sum PMI; PMI Explained For Your Buyers

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On Friday, I blogged about using Lump Sum or Single Payment PMI to Make Transactions With Low Appraisals Work. And I got a ton of feedback, so I am following […]Read More

Understanding Lender Credits In Home Mortgages

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Lender credits are discounts offered by the lender that apply to closing costs and reduce the amount of money you pay at closing.Read More

Free Refis Aren’t Free

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An agent recently told us he only refers his clients to “one loan officer” because that loan officer “offers a ‘free’ refi to all of his clients in 6 months, […]Read More

Closing Cost Credits; Agent Credits Allowed; Reminders

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Closing cost credits are often necessary to help cash-starved borrowers close transactions, as total closing costs can easily exceed $10,000 for even inexpensive homes, depending on transfer taxes and other fees local to a particular county.Read More

Lender Credits For Closing Costs – When & Why

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Most buyers understandably want the lowest rate possible when they lock in their rate. This is particularly the case when they believe rates are at an all-time low and when […]Read More

Is Paying Mortgage Points Worth It?

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What are mortgage points? And is paying mortgage points worth it? A “point”— formally referred to as a “discount point”— costs the borrower one percent of the loan amount. Mortgage lenders typically refer to this as “buying down your rate.” For example, one point on a $500,000 loan is $5,000. The point is a fee typically paid at the beginning of the loan in most cases and it is up to you as to whether you opt to pay for discount points.Read More

How Points, Origination Fees and Lender Credits Affect Rates

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In Friday’s Blog, I pointed out how many things affect a buyer’s interest rate, including Credit Score, Loan Amount, Property Type, Lock Period, LTV, etc. But – I received questions […]Read More

How Sellers Can Help Cash-Strapped Buyers (They Can’t Gift Funds)

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SELLER CAN’T GIFT FUNDS An agent recently asked us if a seller could gift funds to a cash-strapped buyer to help the buyer get into the home. The answer unfortunately […]Read More

Lender Credits for Closing Costs – Success Story & Reminder

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LENDER CREDIT SEALS THE DEAL An agent we work with was able to get one of her clients into contract on Friday by taking advantage of the large lender credits […]Read More

Who Pays Closing Costs? Seller, Lender & Realtor Options

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When buyers face steep closing costs, seller, lender, and even Realtor credits can help cover expenses, making transactions smoother and more affordable.Read More

Using Lender Credits For Closing Costs; Just Need Down Payment

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When purchasing a home, many buyers face the challenge of covering closing costs. One option is using lender credits to cover these costs. This allows the borrower to focus solely on the down payment while adjusting their interest rate to receive credits toward closing costs. For instance, at a 3.75% interest rate, the borrower can get around $2,500 in credits, while a 4.125% rate provides up to $8,500 in credits, depending on the situation.Read More

Using Higher Rate To Pay for Closing Costs; Lender Credits

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Discover how a slight rate increase can unlock valuable lender credits to cover closing costs, easing the financial burden for cash-strapped homebuyers and making the path to homeownership more accessible.Read More