Loan Level Price Adjustments (LLPAs)

📣 We can’t blame interest rates for this one! 📈 Loan Level Price Adjustments (LLPAs) are increasing for many mortgages this spring.* LLPAs are fees the government mortgage entities set relative to the nature and potential risk in different loan scenarios. More risk means higher costs, and these costs are passed to borrowers in the form of higher rates or points. 💰 The changes my preferred lender Matthew Kelchner at Rocket Mortgage expects to most impact our clients are higher costs for: Cash-out refinances Borrowers with high debt to income ratios Loans with smaller down payments Multi-family or investment property financing One piece of good news is that temporary fee adjustments that help first-time borrowers and low-to-moderate income borrowers will now be permanent! 🏡 What should you do? If you’re thinking of a purchase or refinance this year, please reach out to my preferred lender 🙋‍♂️ Matthew Kelchner at Rocket Mortgage to see if the fee changes may impact your scenario. Matthew can weigh the potential costs and benefits of acting before these changes occur; he's ready to help when you're ready. 💪 * Fannie Mae and Freddie Mac are instituting the changes for loans purchased by them as of May 1, 2023. ☎️ 602-517-4463📧 Mail@JasonPetersonRealtor.com🌐 JasonPetersonRealtor.com  

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Use the 2-1 Buydown to Access a Lower Interest Rate

📣 A 2/1 Buydown is just one type of program for buyers to access and secure a lower interest rate and payment for the first two years of their home loan. Typically, a seller will pay some interest up front so the buyer can enjoy a rate that's 2% lower in the first year and 1% lower in the second year. 💰 With a 2/1 Buydown, your mortgage interest rate will be discounted by 2% during the first full year of your loan and by 1% the next year. The seller or builder typically pays the costs. Access the 2/1 Buydown Calculator to see how this special loan program might work for your scenario and reach out if you would like to learn more. 🧮 In a conventional 2/1 Buydown, a lender may calculate the exact amount of interest saved in years 1 and 2 to establish as the upfront cost of the buydown. The funds for the buydown are held in an escrow account and applied with each regular payment to bring it up to the full amount otherwise due. Buydown costs paid by a seller may still be deductible as points/pre-paid interest by the borrower, but always check with your tax professional for applicability in your scenario. 📝 Here's a calculator you can use to help you see the difference a 2/1 Buydown can make in a home purchase. 🏡 You'll see how this strategy will deliver much more than just a lower monthly payment. There may be other options available that are better suited to your needs. Please contact me with any questions, so I can connect you with one of my preferred loan officers. 🙋‍♂️ 🤔 Can a 2/1 Buydown Help Me to Access a Lower Interest Rate? ☎️ 602-517-4463📧 Mail@JasonPetersonRealtor.com🌐 JasonPetersonRealtor.com  

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How much home can you afford? (Total Payment and Qualification Calculator)

📣 Want to know how much your house payment will be each month? 💰 The price of the home is only one part of the equation. There are other costs to consider such as taxes, interest, home insurance, possibly mortgage insurance, and other fees as well. 🙋‍♂️ The good news is that my colleague loan officers and I have made it easy to gauge what your payment will be with our 📝 comprehensive online tool that shows a home’s monthly payment, the amount of cash likely needed to close, and income required to qualify for a mortgage. It allows you to adjust for factors unique to your scenario. And it’s easy to use on your phone while you’re out shopping for homes. 🏡 🤔 How much home can you afford? ☎️ 602-517-4463📧 Mail@JasonPetersonRealtor.com🌐 JasonPetersonRealtor.com  

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