15/20/30 year loans!

I love to share some alternative options when I feel these can help you with certain clients that are on the fence for particular reasons. This particular one plays to those clients in their 40s or 50s, aiming to pay off their homes before retirement! The best interest rates are usually a 15-year mortgage, but the gap is extra wide today, and 20-year mortgages are just a tad higher than a 15-year, and both are much better than a30 30-year rate today! Let’s dive into the numbers for an $800,000 loan with today’s rates, and see how these fantastic options can elevate your clients’ financial futures!

The Rate Advantage and Retirement Payoff

For clients prioritizing lower interest and faster equity, the 15-year term shines with rates 0.75% better than 30-year, while the 20-year option offers a 0.50% advantage - big factors in saving thousands! Here's the breakdown:

• 15-Year Mortgage: Monthly payment of $6,696, with $34,275 paid toward principal in the first year.

• 1. Total payments: $1,205,280 ($800,000 + $405,280 interest).

• 20-Year Mortgage: Monthly payment of $5,789, with $21,056 paid toward principal in the first year.

• 1. Total payments: $1,388,560 ($800,000 + $588,560 interest).

• 30-Year Mortgage: Monthly payment of $5,122, with $8,731 paid toward principal in the first year.

• 1. Total payments: $1,844,080 ($800,000 + $1,044,080 interest).

The math tells the story: the 15-year saves $638,800 in interest compared to the 30-year ($1,044,080 – $405,280), while the 20-year saves $455,520 ($1,044,080 – $588,560). For clients in their 40s or 50s, this could mean a paid-off home by their 60s or early 70s - perfect for a stress-free retirement!

These mortgage terms are fantastic tools for your clients! The 15-year option, with its higher payment ($6,696 vs. $5,122), slashes interest by over $638,000 and pays off the loan in half the time, building equity fast with $34,275 in the first year. The 20-year sweet spot ($5,789/month) offers a middle ground, saving $455,520 in interest and paying off in 20 years with $21,056 toward principal initially. The 30-year ($5,122/month) spreads payments over 30 years but costs $1,044,080 in interest - could your clients trade that new BMW or Mercedes for 15-20 years to pocket those savings instead?

The shorter-term loans could be put on the back burner, and when they refinance from a 30-year to a 20-year on their first refinance, or even a 15-year! It’s putting it out there and

These options give you powerful alternatives to present! The 15-year is ideal for clients eager to retire debt-free, the 20-year balances cost and speed, and the 30-year suits those needing lower payments. With rates favoring the shorter terms, you can highlight the 0.75% and 0.50% savings to overcome objections and showcase long-term value. Imagine the confidence your clients will feel owning their home outright by their 60s or 70s!

Please let me know if you have any questions or if a client needs my guidance. I’m just a call, text, or email away.

📞 Cell: 661-714-6258

📞 Direct Line: 661-291-2222

📞 Office: 661-260-2970 ext. 2222

📧 Email: Mike@AugustaFinancial.com

But wait, there’s more…

Interest Rates

Interest rates have held in all, although we have not seen much improvement since the big move last Friday! We would love to see more bad economic news to get these rates down a little further!

Loan Programs

• We do loans on Non-warrantable condos!
• We offer 12-day escrows for pre-approved buyers, including conventional FHA/Jumbo/Bridge loans.
• We provide loans in all 50 states, so call me with anything you need.
• Government loans (FHA/VA/USDA) are in the high 5’s and low 6’s.
• Conventional loans up to $806,500 are in the low to mid 6s.
• High-balance loans from $806,501 to $1,209,750 are also in the 6’s and 7’s.
• Jumbo loans above $1,209,750 are in the 6’s and 7’s.
• Bank statement loans are available with 10% down again, with larger down payments in the 6’s++.
• Profit and Loss Statement loans require 20% down - no bank statements needed, only a profit and loss statement!
• 0 down loans are available in the high 6s, with a minimum credit score of 620, up to $1,300,000.
• Private Money lenders offer Hard Money Loans with 35% down.
• No-Ratio Loans require a 30% down payment.
• DSCR (Debt Service Coverage Ratio) loans are available with as little as 15% down.
• Bridge Loans typically have an interest rate of 7.99% with limited fees, helping you get where you need to go!
• 3/2/1 Buydowns, 2/1 Buydowns, and 1/0 Buydowns are available at great starting rates!

Please note that interest rates are subject to change without notice, and the information above reflects LA County Loan Limits.

**Good News for Condos:** Nothing New

**Bad News for Condos*** Nothing New

CONDO HELP!!!

If you have a listing or a buyer interested in a specific condo, and you’re unsure whether the condo is warrantable or Non-warrantable, please call me and we can look up Fannie’s list in real time. I have already done that on three condos today, and my list was accurate on all 3. We don’t know when something has changed, and it would be impossible to track everything day by day, but we don’t mind looking up a few each day!

The full state of California’s naughty list has been added to: MikeMeena.com! See the link below:

https://mikemeena.com/non-warrantable-condos/

Let me know if you hear anything new about condos or townhouses.

I am available every day if you need anything.

📞 Cell: 661-714-6258

TEXT: 661-714-6258

📞 Office: 661-260-2970 ext. 2222

📞 Direct Line: 661-291-2222

📧 Email: Mike@AugustaFinancial.com

Have a great day and an even better tomorrow! Please call me when you have a client who needs to borrow!