Interest Rates and Loan Programs

For your review...  Please see the document below.  I had a chance to speak with one of our seasoned CFC Loan Reps this morning about some of the "ins and outs" of the loan business and how "knowledge is power" (actually, some would say, "APPLIED knowledge is power."  I think it's somewhere in the middle, but anyhow...)

He informed me that he is working with a buyer that is interested in a home in the $450K to $500K price range.  His buyer was looking at a "Homepath" listing at about $450K that needed about $50K in work, and the interesting thing is that a Homepath property does not have Mortgage Insurance (M.I.)...  He went on to clarify that the M.I. is actually "built into the rate".  The other home he was interested in was about $500K and needed NO work at all (it was move in ready.).

So... the payment difference was about $65/mo. more for the nicer, more expensive home that was "move in ready."

The moral of the story...  sometimes it pays to do the math!  (And if you don't like doing the math, give me a call, I have plenty of GREAT loan contacts that will be happy to do the math for you, and help you find out what will work best for you!)

Thanks Eddie at CFC for this great info!