Tag: home loan

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Reverse Rising Interest Rates with Seller Concessions

Getting interest rates lower for a faster, easier home sale

REAL ESTATE NEWS (Los Angeles, CA) — Interest rates are going up, but here are some excellent solutions. Seller carry financing, seller mortgage rate buy-downs and other seller concessions can make it easier and more affordable to buy a home. Turn high interest rates upside down! Sellers are providing more help to buyers, with the help of some home loan professionals.

As the market slows down due higher interest rates, here is a quick bulletin to help buyers and sellers to get a property sold — even a non-warrantable condo listing! It starts with two powerful words: Seller Concessions. The Loft Blog knows of some local area mortgage professionals who have multiple loans locked this month at 4.99% for litigated condos. All of them have seller concessions, used to buy down the note rate from approximately 6.5% to 4.99%. Most are 3.00% concessions.

Here’s the math for a $600,000 property listing:

Scenario #1. Buyer and seller settle on a $585,000 price (a 3% price reduction) no concessions, and buyer gets a 30 year fixed mortgage at 6.5% (6.539% APR) 0 pts, on a $438,750 loan (25% down)

Payment is $2773 P&I and down payment is $146,250.

Scenario #2. Seller counters at full price with a 3% seller concession instead of 3% price reduction. Buyer gets a 30 year fixed mortgage at 4.99% (5.296% APR) with a 3% loan origination fee paid by the seller concession, on a $450,000 loan (25% down) Payment is $2413 P&I and down payment is $150,000.

Scenario #2 gets the deal done.

The buyer gets a rate of 4.99% and only has to put down $3750 more, AND, has a payment that is $360 less than Scenario #1. They make back the $3750 in 10.4 months with the reduced payments!!!

The best part is: It’s a wash for the seller, as they net the exact same amount.

PS. It works the same for single family homes too, with rates now back to 3.99%.

Experienced mortgage lenders say that this market will wash out many lenders and agents, but hard work and out-of-the-box thinking can make a home sale happen. New ways of financing are an absolute must to survive for prospective home buyers, sellers and investors.

Request a free report, and tell us about any desired transaction that might benefit from this winning combination of mortgage loan with seller rate buy-down. Fill out the online form:

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Home sale quicker with an interest rate buydown through seller concessions

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

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Planning your Mortgage Payments What Payments Can You Afford? — L.A. Loft Loans

Dreaming of your new loft? Do your groundwork first when planning your mortgage budget.

There are important factors you should be aware of when deciding what your ideal payment should be.

Personal Considerations for Homebuyers 

A lender could tell you that you can afford a considerable estate, but can you? Remember, the lender’s criteria look primarily at your gross pay and other debts. The problem with using gross income is simple: You are factoring in as much as 30% of your paycheck—but what about taxes, FICA deductions, and health insurance premiums? Even if you get a refund on your tax return, that doesn’t help you now—and how much will you get back?

That’s why some financial experts feel it’s more realistic to think in terms of your net income (aka take-home pay) and that you shouldn’t use any more than 25% of your net income on your mortgage payment. Otherwise, while you might be able to pay the mortgage monthly, you could end up “Loft poor.” 

Here are the personal income factors you should consider when you start shopping for your new loft.

1. Income 

Are you relying on two people’s jobs to pay the bills? Is your current position stable? Can you easily find another position that pays the same, or better, wages if you lose your current job? If meeting your monthly budget depends on every dime you earn, even a small reduction can be a disaster.

2. Expenses 

The calculation of your back-end ratio will include most of your current debt expenses, but you should consider future costs like college for your kids (if you have them) or your hobbies when you retire.

3. Lifestyle 

Are you willing to change your lifestyle to get the house you want? What is your PBJ for lunch threshold? If fewer trips to the coffee shop and a little tightening of the budget don’t bother you, applying a higher back-end ratio might work out fine. If you can’t make any adjustments or already have multiple credit card account balances—you might want to play it safe and take a more conservative approach in your house hunting.

What mortgage concerns do you have? Leave a comment here.

4. Personality 

Even twins don’t share the same personality, regardless of their income. Some people can sleep soundly at night knowing that they owe $5,000 per month for the next 30 years, while others fret over a payment half that size. The prospect of refinancing the house to afford payments on a new car would drive some people crazy while not worrying others at all. You need to find out what fits your dreams.

#newlofts #DTLAloftmortgage

Thinking about making a move? Commercial and industrial conversion have special issues that may require a loft lender. Get the FREE report – How to Get the Best Deal on a Loft Loan. Complete the form: Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | Popular | Luxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

When it comes to mortgage financing no two people are the same, not even Legos

Copyright © This free information provided courtesy L.A. Loft Blog with the information provided by Corey Chambers, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. We are not associated with the seller, homeowner’s association, or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com, Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties are subject to prior sale or rental. This is not a solicitation if the buyer or seller is already under contract with another broker.