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Zero Point Low Rate Refinancing |
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Zero Point Low Rate Refinancing |
 On
Line Pre-QualificationConforming Fannie Mae & Freddie Mac Programs to $240,000 to 100% LTV, 95% LTV or 90% CLTV (see F.A.Q. for LTV definitions). Cash
Out Refinances to 95% with superior credit, one loan with low rates.
Cash out up to 100% is available under a different program. These loans generally require good credit and two months P.I.T.I. (principal, interest, taxes, and insurance) in reserves after closing. Underwriting can be flexible with additional reserves and / or lower loan to value ratios. Previous bankruptcy is allowed under this program with some restrictions... Be sure your Zero point quote is really a Zero Point quote...and not really adding the points in with the loan amount. A customer called us in November, she had received a No Point No Closing costs below market quote from another company (it ended up being a five year balloon loan) on a $65,000 loan. We reviewed the Good Faith Estimate. The closing costs were over $6,000!!! They were financing the points (5 on a no point quote) and other closing costs and considered that a no cost refinance!!! We simply DO NOT do business that way... Make sure you are receiving a TRUE Zero Point quote from the competition. Ask if there are discount points or other lender or broker fees. If a rate
quote sounds to low to be true, it isn't. A typical bait & switch
is the "30 year fixed" quote way below market. At closing the borrower
discovers that the "30 year fixed" has a 5 or 7 year balloon payment.
See F. A. Q.'s for balloon payment definition.
Be sure
to print the Application Checklist...
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