"Refinance Rolldown" & No "Out of Pocket" Cost Loan
This is perhaps the single best loan that is available today! This loan allows a homeowner to refinance a home without adding to the principal balance of the existing mortgage. It allows a home purchaser to buy a home without having to come out of pocket for the nonrecurring closing costs. How it works is simple. The borrower takes a higher interest rate than the current going rate. (Usually, .375% to .50% higher than the current no point loan.) Lighthouse Home Loans receives a "yield service release" premium, which is used to pay the nonrecurring costs. This loan applies to borrowers who live in or will owner occupy the property. Minimum loan is $150,000.
Benefits:
- Mortgage
balance does not increase & No "out of pocket" Costs.
- Nonrecurring
costs are paid by the "service release" premium.
- No prepayment
penalty.
- 30, 25, 20,
15 or 10 year fixed rate loans up to 95% of the value.
- Cash out
to 80% of the value. (90% cash out with PMI.)
- The larger the loan, the better the interest rate.
This is a favorite loan for the borrower who knows they may refinance or sell in the next several years. Why spend $2,500 to $4,000 if this is the situation.
Likely reasons to consider this loan:
- Interest
rates may drop in the future.
- Borrower
needs a temporary loan till another property is sold.
- Rates may
go lower, but you don't want to miss out if they don't.
- Possibility
of moving but your current interest rate is high.
- Consolidate
bills to improve credit rating for a future loan.
- Drop PMI
insurance.
- Take $2,500
to $4,000 more cash equity out of the property.
- Uncertain
of the time period the property will be owned.
- No equity
lost in closing costs.
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For more information, please e-mail or call 800-784-5363