I know I talk about the first-time buyer credit that we offer to all first-time buyers making under $116,280 per year if they are a 1-2 person household or $135,660.00 if there are 3 or more people in a household. I know you are aware that there is a 20% TAX CREDIT on the interest that is paid on the loan, but what does that mean in dollars? Well, let's say we have a buyer that has a $400,000.00 Loan Amount and they get a rate of 4.750%. Their payment would be $2086.59 + taxes... The interest portion of the loan is $1572.23 on average for the first year so they will get a TAX CREDIT of $314.00 per month! So their true payment is $2086-$314 = $1772. So a $400,000.00 loan with a $1772.00 payment if calculated over 30 years actually has an effective interest rate of 3.39%! Holy Moses Batman everyone that can qualify for this loan should!!! This is a NO BRAINER!!! Yes this can be done with FHA, VA, and Conventional loans! The rate stays about the same no matter what loan amount a buyer is getting! Remember the rate does not change but the effective rate is 3.39%! THIS IS CRAZY GOOD!!!
OK, I have no more words to describe it, but to my millennial followers this may help! Bruh, this tax credit thing is Lit! I am gonna tell the Fam TBH this loan program is the GOAT!
Now I am done! Hope I didn't embarrass myself, and good luck translating the last paragraph!
Interest rates are still great! The 30-year mortgage has had 104 months below 5% in the past 60+ years! I hope these help you if you are shopping around:
- 30-year fixed conventional 1st Mortgage with 20% down - 4.750% (4.813 APR). Loan amounts up to $453,100.00 = $2363.58
- 15-year fixed conventional 1st Mortgage with 20% - 4.250% (4.352 APR). Loan amounts up to $453,100.00 = $3408.57
- 5/1 ARM 1st Mortgage - 20% down - Fixed for 5 years and then becomes variable - 4.125% - (4.276 APR) Loan amounts up to $453,100.00 = $2195.95
- 7/1 ARM 1st Mortgage - 20% Fixed for 7 years and then becomes variable - 4.375% - (4.528 APR) Loan amounts up to $453,100.00 = $2262.26
- 10/1 ARM 1st Mortgage - 20% Fixed for 10 years and then becomes variable - 4.375% - (4.528 APR) Loan amounts up to $453,100.00 = $2262.26
- 30-year fixed 1st Mortgage FHA loan 3.50% down - 4.375% (5.539 APR). Loan amounts up to $453,100.00 = $2301.85 + $326.56 PMI = $2628.41
- 30-year fixed 1st Mortgage VA loan 0% - 4.375% (4.318 APR). Loan amounts up to $453,100.00 = $2262.26
- 30-year fixed 1st Mortgage Jumbo loan 20% down - 4.625% (4.639 APR). Loan amounts up to $3,000,000.00 = $15,424.19
All of the above are based on a 740-credit score. Rates are subject to change without notice, your mileage may vary!
Have a great week and I will be here all week! Please call me if you have any questions or if I can assist you or anyone you know with a home loan. My office line is 661-260-2970 and my cell is 661-714-6258. Have a great week!