Six Loan Scenarios For Your Home Purchase

If you are considering buying your first home or you are currently renting and wanting to buy instead of continuing to make rent payments, these scenarios will give you a good idea of estimated payments at various interest rate levels. These are not intended to be loan offers but rather a list of program examples you may want to explore further. When you compare the amount of a rent payment to a mortgage payment please remember two important things. First, the interest amount of your mortgage payment is tax deductible as is your property taxes. Secondly, real estate appreciates over time. Even a small 2% annual appreciation rate on a $500,000 property will grow the property to a value of $552,000 in just 5 years. A rent payment will not grow equity except for the landlord. If you find the right property at the right price, it is in your best interests to be an owner.

Buying your home at the right price is always important and right now is a good time to pick up a bargain. Interest rates are at historically low levels and home prices have come down. Please look at the page "Helpful Tips To Avoid Overpaying" on my Power Point presentation "Why Housing Appreciates". This page offers useful information on how you can find that home at the right price and avoid overpaying.

For buyers looking for a very low payment the first few years without deferring interest, ask about the 2/1 Buydown program. If you qualify, you could have a first year rate in the area of 4.75% and a second year rate of 5.75%. This is an ideal program for first time home buyers. Please phone, fax or e-mail for all conditions and details and monthly payment amounts.

The above loan scenarios should give you an idea of the type of payments you might expect based on loan amount and loan program. Obviously there are many additional loan programs available that you may want to consider. The Option ARM minimum payment is a deferred interest payment. That program allows you a choice a payments each month including the minimum payment, full interest payment and fully amortized payment as well as any amount you wish to pay in between the minimum payment and full interest amount. The Option ARM program is intended to give you maximum payment flexibility. All applicants will not necessarily qualify for all programs available. Qualifications are based on credit score, income, debt level, etc.

For specific purchase loan programs and complete details of features, terms and conditions, please call, fax or E-mail Peter with your purchase price and loan amount desired and he will send you back several loan scenarios within hours. Call Peter directly at 800-962-8033, fax to 925-855-9770 or e-mail to Peteru@clarionmortgage.com. Please indicate your preferred method of communication…phone, fax or e-mail.