Recently Closed - Myrtle Beach, South Carolina Condo Refinance
Recently our team was fortunate enough to work with a customer we've worked with for years on various properties in various states. One benefit of licensing in multiple states is that when a customer moves, considers investing outside of their state, or picking up a vacation home, we're still able to assist. In this instance, we last helped our client nearly a decade ago when we met him in Pennsylvania. This past week, we funded a condo loan in South Carolina, helping the customer move from a 30 year loan into a new 15 year mortgage loan.
One of the perks of a 15 year mortgage is that there are fewer loan level pricing adjustments (LLPAs) that negatively affect interest rates. Fannie Mae charges 30 year loan recipients various fees based on loan term and FICO score, but with a 15 year loan, many of these rate adjustments aren't in place, often resulting in better, cheaper loan options for those borrowers who qualify for a 15 year loan.
In this case, we were able to reduce our client's rate, and shave about 8 years from the existing loan, while still leaving our client in good shape from a disposable income standpoint. Often, we work with investors and the right strategy comes down to several things: the borrower's personal financial discipline (aka, if you take out a 30 year loan, will you have the discipline to may extra money toward principal if you'd like to have the loan less than 30 years), the cash flow available based on market rent, along with how long an owner plans to own the property. These considerations, amongst others, are reasons the "best" mortgage loan is different for each unique individual we work with. In this case, we were able to reduce the loan term so our customer doesn't have to be concerned with "how much extra should I pay" each month. He's a busy business owner and knows he doesn't have the focus to worry about paying different amounts each month, so the 15 year was an easy way for him to guarantee interest savings over the life of his loan.
We were fortunate that our client called us prior to rates drastically increasing in the month of March, and we were able to lock in a low rate and allow enough time for loan processing. In Myrtle Beach where the property was located, we're very familiar with condos and the lending process between second homes and investment properties, both being very popular in the area. With the borrower's help in getting us all that was needed to process their loan, we were able to help them accomplish their goals and wrap things up with a 5 star review!