Well do you?
If you do then how come Homepath continues to get such an undeserved
Bad Rap
okay now you're going to need to be smart about this, because not only will you get a lower payment, you'll like the other benefits too.
I just priced a $125,000 purchase price for both Homepath and FHA and, wow what a difference in the note rate.
FHA was 4.25% with no points and Homepath was 5.375%.
Well that should end it right there, right?
not so fast now.
Because there's another very big factor
Homepath does not have MI...No unpfront MI, and No annual MI
Hmmmm
where's he headed here
So to start off with FHA has a larger downpayment, and on a $125,000 purchase price it's $625. Okay not a lot, but for first time homebuyers $625 bucks is well $625
Now, add on 1.75% for the upfront MI for FHA.
The mortgage amount for FHA is now $122,735, and the mortgage amount for Homepath is $121,250.
The P&I for FHA @ 4.25% is $603.78, and the P&I for Homepath @5.375 is $678.97
Now...Drumroll please.
to the payment for FHA you must add the monthly MI premium of 1.35%, to Homepath nothing.
the monthly MI payment is $138.08, and the P&I is $603.97.
the total FHA payment is $742.05, and the Homepath payment is still $678.97.
isn't math a wonderful thing?
Okay, I promised you more, so here it is;
Homepath does not require an appraisal. The purchase price is the value. Done, that's it. No messin with it at all.
Oh ya, that's a savings of $425
hmmm
let me ask you, are your first time homebuyers tired of competing for properties with cash buyers? well Homepath has
First Look
this allows the first time homebuyer to have 15 days before other buyers can bid on the property.
that's pretty cool if you're a first time homebuyer.
so you've got to give Homepath some consideration.
Now, I've been a mortgage lender, well forever, or so it seems, and I firmly believe that FHA has put more first time homebuyers in homes than any other program. I'm telling you I don't even believe it's close.
But, in today's market you need to keep all of you options open, so don't immediately dismiss Homepath because the note rate is higher. After all I need to know...
do you want the lowest payment or not?
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