NO PMI insurance on Conventional Loans with only 5% down

The program is what is known as LPMI. This stands for Lender Paid Mortgage Insurance. The lender pays a Single Premium Up-Front charge, and the buyer is exempt from paying any monthly Mortgage Insurance for the life of the loan. The borrower must still go through the formal approval process through a participating PMI company, but they won't have to pay anything toward this program. This is offered by a few lenders for buyers who desire not to pay PMI or the FHA monthly risk premium. It is offered only on conventional loans with a minimum down payment of 5% and buyers with at least scores of 680 or higher. The higher their credit score is, the lower the interest rate that is offered to the buyer. Their is a cost to this in the form of a higher interest rate. The average add-on to the interest rate is .25%, but the actual hit can vary based on the borrower's credit score and the amount of the down payment. Obviously, a person with a 800 credit score and 15% down payment will pay less than a borrower with a 680 score and only 5% down. The best part is that the overall monthly payment goes down substantially for the customer - at least by 5%.

Please call me with any questions or additional details.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972
andrew.williams@abacusmort.com
www.abacusmort.com

COULD THIS BE THE BEGINNING OF A NEW MARKET?

I don't want to jinx myself, but the Real Estate market seems to have opened up. I had my best months in newly originated loans in the last quarter of 2011. It reminds me of 1997. Normally after Thanksgiving, things slow down as we go into the holiday season. It is a time to reflect on the year's acitivites. Yu can regroup and work on year-end reports and tax returns. Instead of getting ready for 2012, December was extremely busy in new loans. I had hoped for some momentum going into the new years. Well, I had my best January in 18 years and there doesn't appear to be any sign of slowing down. Is this is a sign of things to come, or an anomaly in the market? One can only hope it is the former.

Andy Williams
President
Abacus Regional Mortgage

Do Some Buyers Think the Interest Rates Are High ?

I have heard more than one buyer state that the interest rates are too high. I can't even fathom that kind of talk. With interest rates at their historic lows right now they can't go much lower. They have no where to go but up! When I was in college studying business in 1981, the interest rates on conventional mortgages got as high as 18%, Fha/VA 16.5%. When I started originating mortgages in 1986 the interest rates had just fallen to as low as 10%, sometimes dipping as low as 9.5%. These rates are a gift and a temporary phenomenon to boost the economy. Buyers should seize this opportunity, especially those who've yet to purchase a home, because they won't last. The home prices are down significantly from their highs. The combination of these two opportunities make it a must for every willing and able buyer to buy a home now!

Andy Williams
President
Abacus Regional Mortgage
484 695 5972