Houston Refinance: Purchasing a New Home? Have a 80-15-5 Loan

Houston Refinance: Purchasing a New Home? Have a 80-15-5 Loan

Contact me, Frank Zhu, and let me help you find the lowest rate in Texas when it comes to mortgage. I’m bilingual in English and Chinese. Give me a call at 512-919-0154 for your mortgage needs.

If you live in Austin | Houston | Dallas please call Frank Zhu for your custom Good Faith Estimate.

Frank Zhu:  512-919-0154

frank@mylendingplace.com

The mortgage rate market isn’t doing much better this week as the rate continually creep up. If you are buying a home however the mortgage rate shouldn’t be an issue as new foreclosures homes will be flooding the real estate market soon in the coming months. Let’s see, the current overloaded housing supplies and add the foreclosures that the banks are going to release on the market soon, the market will be over-saturated with an abundance supply of houses.

In economics, more supply and less demand equals decrease in price and more negotiation rooms for the buyers. Therefore, the mortgage rate isn’t that big of a deal when it comes to home purchasers. With the 80-15-5 loan, you will only need 5% of the sales price for the down payment and take an 80% loan for your 1st lien and a 15% loan for your 2nd lien. So if you are buying a $100,000 house, you would only need $5,000 + $3,000 closing costs for about a total of $8,000 to buy a house. 80-15-5 loan eliminates PMI fee per month while you are building equity through the 2nd lien, where PMI does not.

The current market rate for no point 30 years fixed rate is 5.125%. Adding the closing costs into it, the APR would be about 5.214%. The 2nd lien lender has an interest rate of 7.5% if you want a 15 years loan or 8.5% if you want a 30 years loan. When you buy a home, it is important to check out how much you can afford per month in mortgage payments as well as your other expenses. Let us help you find a house that is priced right in your suitable range.

We also offer “no cost” refinance. Contact me, Frank Zhu, and let me help you find the lowest rate in Texas when it comes to your mortgage. I’m bilingual in English and Chinese. Give me a call at 512-919-0154 for your mortgage needs.

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