You Don't Need a 20% Down Payment to Buy!

     You Don't Need a 
20% Down Payment to Buy!

     You Don't Need a 20% Down Payment to buy a home! 

     Let me repeat that ...

     You Don't Need a 20% Down Payment to buy a home!

     I'm not sure how I can say that more clearly, more often, more concisely, and consistently ... or deliver it more emphatically.   I say it again now, almost in fear of sounding like a broken record.

     Yet a Zelman & Associates (via the MReport) study reveals that a large percentage of people still believe otherwise.

     Here are some of the beliefs reported in this study:

• Respondents, on average, think Lenders demand at least 11 to 15% Down Payment for a purchase
• 38% of 25-29 yr. old respondents believe the minimum Down Payment to purchase a home is 15%
• 42% of 30-34 yr. old respondents believe the minimum Down Payment to purchase a home is 15%
• 30% of 25-29 yr. old respondents thought it possible for them to qualify for a Mortgage
• 40% of 30-34 yr. old respondents thought it possible for them to qualify for a Mortgage
• 39% of all respondents think the minimum Down Payment needed for their purchase is 15% of the Sales Price of the home

     WRONG!  WRONG!  WRONG!

      And just in case you didn't catch my message  ... If you believe any of the above, you're WRONG! 

     Options, like those below, allow you to make MUCH smaller Down Payments: 

• A 3% Down Payment mortgage program option is available now. 
• 0% programs are also available, should you be a Veteran of the Armed Services or purchasing an USDA-RD approved property.  
• FHA continues to offer its 3.5% Down Program and all the funds needed can be a GIFT

     Bottomline:  If you want to buy, now or in the future, take action.  Don't listen to rumors.  Don't rely on bad or unreliable information.  Don't continue to just guess or wonder.  

     Have a conversation.  Ask your questions.  Get the facts. Don't hesitate.  Do it now.  I'll be happy to hear from you ... 

       

     *  Hoping to Buy or Refinance a home in Illinois, the Chicago area, or Wisconsin?  Contact Me.  I'll put my 40 years of mortgage experience and expertise hard to work on your behalf.  

     I'm easily found at:

Gene Mundt

Mortgage Originator  -  NMLS #216987  -  IL Lic. #031.0006220  -  WI Licensed

American Portfolio Mortgage Corp.

NMLS #175656

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  1.815.524.2281

gmundt@goapmc.com

www.genemundt.com

             

       

Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.  

Your Referrals are Welcomed and Appreciated!

 

Will County Residents Receive Discount For Pets Spayed or Neutered in February, 2015

Will County Residents Receive Discount

For Pets Spayed or Neutered in February, 2015  

     
     Will County residents that have their family pets spayed or neutered during the month of February 2015, can receive a $40 savings discount courtesy of the County of Will.  

     The discount, good for up to 2 animals per household, is for animals spayed or neutered between the dates of February 1st and February 28th, 2015.

      
     Eligibility for the discount(s) is based upon:

• Owners must show proof of Will County residency
• Pets must reside with their Will County owner
• Pets must be registered with the Will County Animal Control
• Pets' Rabies Vaccination must be current (Proof Required)
• Pet Owners must show/produce a Will County Registration Tag for the animal(s) on the day of surgery
• Spaying/Neutering must take place 2/1 through 2/28

     Pet owners should call their pet's veterinary office to make sure that their vet is participating in this Will County program. 

     Should you have questions regarding the $40 discount being offered for Will County residents' pets during the month of February, 2015 ... please call:  815.724.1521.

    For more information regarding the myths and facts surrounding the spaying and neutering of pets, please visit the Humane Society website:

Myths and Facts About Spaying and Neutering

       

     *  Hoping to Buy, Build, or Refinance a home within Will County ... or elsewhere in the Chicago area?  Contact Me Today!  I'll put my 37 years of mortgage experience and expertise hard to work on your behalf.  

     I can be easily found at:

Direct:  815.524.2280

Cell or Text:  708.921.6331

eFax:  815.524.2281

gmundt@goapmc.com

www.genemundt.com

             

               

Gene Mundt, Mortgage Lender, a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL. 

  

 

How a Piggyback Loan Works

How a Piggyback Loan Works

     Purpose of a Piggyback Loan:  To reduce the amount of the first loan amount, used in addition to a Borrower's own funds (Down Payment).

     Advantages of Using a Piggyback Loan:  The Piggyback is typically used to reduce the first loan amount to an 80% level, so as to eliminate the cost of Mortgage Insurance, or to conform to certain programs' requirements of a 20% Down Payment.

     A Piggyback Loan can also reduce loan amounts of first mortgages down below a Jumbo Loan* level. (*$417,000+ in IL/most markets.  Higher in high-end markets.)  At the lower, non-Jumbo Loan level there are frequently better or more options in the Conforming Loan Markets (not always).

     Drawbacks:  A second lien (Mortgage/HELOC) is filed against the property, as collateral for the loan/note.  There are typically additional Closing Costs from the Lender, and from the Title Company.  There is a second loan application process, and sometimes, duplication of efforts and documentation needed.

     Example of a Piggyback Loan: 
                    Sales Price:                         $400,000
                     1st Loan Amount:             $320,000  (80%)
                     2nd Loan Amount:           $  40,000  (10%) Piggyback
                     Buyer's Down Payment:  $  40,000 (Buyer has only  10% Down)                                              
                     Mortgage Insurance:        Eliminated!  (1st Loan is at 80% Value)                                                                                                                                                                           

     Savings in Payments:   In order to determine your savings you must compare the savings with the resulting payment associated with the 2nd Loan  ... VERSUS ... the payments for a loan at 90% Loan-to-Value with Monthly Mortgage Insurance.  

     In this type of scenario:

• Borrowers SAVE the Cost of Mortgage Insurance 
• 1st Mortgage Loan Payment is LOWER, reducing the LTV (Loan to Value) of the FIRST Loan

     
     Piggybacks are also used to avoid using a Jumbo Loan as well.  

      An example of a Jumbo Price Scenario using a Piggyback Loan follows:
             
               Sales Price:                 $600,000   (Buyer has 20% Down = $120,000)                                                                                                            
                Jumbo Loan:              $480,000

                                           -  OR  -

              1st Mortgage Loan:  $417,000   (Maximum "Conforming" Loan*)                                                                                                           
                                                           $  63,000  ( Piggyback 2nd Mortgage)
                                                           $480,000  TOTAL Loans

     * Used to avoid a Jumbo Loan Program if market conditions/Guidelines Dictate


     In my next post, "Jumbo .. or Piggyback Loan.  Which is Best?" ...  I will talk about the pros and cons of each type of loan, how each loan can be utilized, and what steps you should take when making your financing decision.

     

*  Considering a Purchase, New Construction, or Refinance of a home in the greater Chicagoland area?  Contact Me today! I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf immediately.

     I can be easily found at:

Gene Mundt

Mortgage Originator  -  NMLS #216987  -  IL Lic. #031.0006220  -  WI Licensed

American Portfolio Mortgage Corp.

NMLS #175656

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  815.524.2281

gmundt@goapmc.com

www.genemundt.com

 

              

          

       Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI. 

 

Your Referrals are Appreciated & Welcomed!

         

Jumbo .. or Piggyback Loan. Which is Best?

 Jumbo .. or Piggyback Loan.  Which is Best?     

                                            

   "Ask the right questions if                 

you're going to find the right answers."            

Actress, Vanessa Redgrave

           
     I've written about Jumbo Loans ... and the many options that exist within them, several times in the past ...  

     The definition of a Jumbo Loan has typically been:  Loans above $417,000 in most markets ... although higher loan amounts have been available in certain high-end markets.

     Recently a new loan option has become available though. This loan option provides a 89.9% Loan-to-Value (10.1% Down Payment) ... and it can be obtained WITHOUT Mortgage Insurance (usually required on loans with less than 20% Down Payment).

     Financing options also exist that help Borrowers avoid Jumbo Loan Limits by issuing a Second Mortgage at the same time as the First Mortgage.  This option can serve many beneficial interests for Borrowers.

     Those benefits would include:

• Eliminating Mortgage Insurance
• Qualifying for a First Mortgage loan amount at "Conforming" loan limits. (Especially beneficial if Interest Rates are lower by doing so)
• Scenarios approvable in a "Conforming Loan Product" that otherwise would NOT be approved if submitted as a Jumbo Loan

     This second mortgage option, referred to as a "Piggyback" Loan, is typically a HELOC (Home Equity Line of Credit). The HELOC helps serve as a Down Payment "supplement", designed to reduce the amount of the First Mortgage.

     In these types of lending scenarios, it's very important to obtain all the facts and costs from your Mortgage Lender, ask questions, and weigh all information carefully.

    
     Why?

   There are both pros and cons that come with these loans. I can't stress the following point too strongly ... 

     Obtain a full presentation of facts and figures ... and make sure you understand them all thoroughly prior to making your financing choice.

     All in all, the scales have tipped in the favor of the Luxury Home Buyer, given the current low Interest Rates and the competition now found between Lenders for higher-end business.   

     Options DO exist!  For information on Jumbo financing options ... and other types of mortgages available in the Chicago-area, contact me today!   

  

 

I can be found at the following:

Gene Mundt
Mortgage Lender  -  NMLS #216987  -  IL Lic. #0006220  -  WI Licensed
American Portfolio Mortgage Corp.
NMLS #175656

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  815.524.2281

gmundt@goapmc.com

www.genemundt.com

 

              

                  

       Gene Mundt, Mortgage Lender, a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL. 

 

Your Referrals are Welcomed!