Jul 8 2016 20477 1

Dated: 07/08/2016

Views: 284

My friend Joel Richardson, with Prime Lending, shared this with me and I thought it was very interesting.

Do you know…… 

 

Are there interest-only loans anymore?

 

  The short answer is “yes”. They have slipped back into the various lender offerings after being very popular before the mortgage debacle in the 2000’s. We are seeing them for jumbo loans, not conventional (FNMA or FHLMC) and definitely not government loans. So, what do they look like?

 

·         Primary home

·         Purchases and rate/term refi’s only

·         25% down

·         minimum FICO score: 700

·         5yr, 7yr and 10yr ARMs only

·         Up to $3mm loan amounts

 

A scenario to give you an idea on rate: 10yr= 3.625%. It’s fixed interest only for 10yrs. Interest on outstanding principal. On the 10th anniversary, it will amortize for the remaining 20yrs on a 20yr schedule. Of course, in Texas, prepay penalties are illegal, so they can sell or refi at anytime. (APR= 3.784%).

 

 

Thanks and I look forward to helping your clients, friends and referrals!!

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