3 Simple Keys to the Lowest Home Loan Payment

With mortgage rates in flux, home-buyer’s and homeowner’s are looking for better options.  Specifically, the lowest possible monthly mortgage payment possible.  While feeling powerless in the face of a shifting home loan rate market home-buyer’s and homeowner’s should take comfort knowing they still have some control over their mortgage payment destiny.

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Team@JeremyHouse.com
602.435.2149

3 Keys to Lowering Your Mortgage Payment

In fact, there are 3 well known variables that impact your mortgage payment.  While the variables are well known, the impact they have is not.  For example, did you know that a home loan payment for a loan can swing hundreds of dollars on the exact same loan amount?  It is true.  A careful and intentional mortgage plan properly incorporating the following 3 items can make all the difference.

While there are far more than just 3 variables that impact a borrowers home loan payment, the following 3 tend to be the most powerful.  Ironically, they also tend to be the most overlooked.

1. Credit Score: can impact interest rate & mortgage insurance costs
2. Down Payment: can impact payment & product eligibility
   1. For example more strategic loan options exist at 5% down than at 3% down
3. Loan Product Choice: can impact interest rate & mortgage insurance costs
   1. Products like HOMEReady/HOMEPossible include areas with no income cap

Buyer’s often do not realize the impact the 3 keys have.  Check out how on a $305,000 purchase, a buyer could potentially lower their payment by $444/month.

Apply for a Home Loan 
Team@JeremyHouse.com
602.435.2149

Numbers Do Not Lie – The 3 Keys in Action

ASSUMPTIONS
Price: $305,000
Down Payment: 3% to 5%
Credit Score: 680 to 740

Using these assumptions, the highest payment and lowest payment are a staggering $444/mo apart.

• Highest PITI payment: $2,184
  (Fannie Mae 30 yr fixed, 3% Down, Monthly MI, 680 Credit, APR 6.325%)
• Lowest PITI payment: $1,740
  (HOMEReady 30 yr fixed, 5% Down, Financed MI, 740 Credit, APR 4.944%)

Buyers can impact their mortgage payment significantly when given the right home loan guidance.   Best of all, even credit score improvements are handled quickly with our Rapid Re-scoring Process.  Couple the 3 keys above with the keys to a smooth mortgage closing and you may just wind up enjoying the home loan process!

By Jeremy House