Interest rate (some) good news from one of our lenders
I want to wrap the weekend with some better news . . .
One of our lenders, had informed us of the following available program.
Let us know if you have questions about this program and if you need to connect with her regarding it.
This program may be relevant for refinance BUT it can’t be a cash-out refinance.
7 years adjustable*
Current Rate: 4.5% – 4.75%**
Main Qualifying parameters
Qualifying states: TX, MO, KS. As for TN – waiting for a confirmation. (other states available too)
For 25% down-payment
SFH or duplex (not 3-plex or 4-plex)
Borrower has NO more than 2 mortgages – the property purchased is the 1st or 2nd mortgage the borrower has
720+ credit score
If the property purchased is the 3rd or 4th mortgage
30% down-payment
SFH or duplex (not 3-plex or 4-plex)
740+ credit score
If the property purchased is the 5th or 6th mortgage
35% down payment
SFR or duplex
740+ credit score
Relevant for US based investors only
* After 7 years, rate adjusts each 6 months based on SOFR (secured overnight financing rate) plus a 3% margin.
Caps are 5/1/5, meaning the first adjustment could be as much as 5%, then each 6 months there is a 1% max adjustment with a 5% life cap over the start rate.
* Rate is based on current/today's market conditions Current index is .399 plus 3% puts the adjusted rate currently at 3.399
If you open a saving account with the bank and deposit the following amount, an additional discount on your rate will be applied:
$200,000 – 0.125%
$500,000 – 0.25%
$1MM – 0.5%