Message of the Month

Mortgage Matters, by Fred Troxell

First Time Homebuyers Program - 4.950%

Never in the 28 years that I have been in the mortgage business did I think I could offer a 30 year fixed rate mortgage at 4.950% with zero points.

And the rate is only the beginning of the good news.

Here are some other important facts:

  • No prepayment penalty
  • 97% financing
  • The seller can pay 3% of the sale price towards your closing costs
  • You only need $1,000 of your own funds - balance can be a gift
  • Reduced closing costs
  • Liberal qualifying guidelines

    TIP: Instead of getting a 30 year loan consider a 25 year loan.

    If you were to borrow $200,000 at 5.000% for 30 years you would pay $1,074 per month.

    If you were to borrow $200,000 at 5.000% for 25 years you would pay $1,170 per month.

    The increase is $96 and it is likely you would be able to budget around it.

    If you were to pay off the loan in 25 years you would pay 60 fewer payments. That amounts to $1,074 X 60 = $64,440 less.

    GLOSSARY: FIRST TIME BUYER – is someone who has not owned their primary residence for three years preceding the settlement date for the home they are purchasing.

    Fred Troxell
    Cambridge Mortgage Associates, Ltd.
    610-279-3175
    FredTroxell@CambridgeMortgageAssociates.com