2015 Mortgage World – what can my buyer expect? What’s New from Prosperity Home Mortgage, LLC. Your Trusted Mortgage Partner Rates rise but still strong Your Government at work! Dodd Frank Act is still implementing rules that will impact the mortgage and housing market in 2015. The next major rollout will be The Loan Estimate, a combination of the old GFE and initial TIL disclosures AND the new Closing Disclosure, combining the old HUD 1 and final TIL statements. • • The new Closing Disclosure must be delivered to the borrower Three Days prior to consummation of the loan. These new disclosures and rules go into effect August 1st, 2015. What does this mean for you as an Agent? Buyer Advantage Fastrack Prequalification vs. Preapproval? OR Buyer Advantage Approval! Our exclusive Buyer Advantage program allows home buyers to obtain a loan Commitment Letter BEFORE beginning the search for a new home. Buyers are able to shop for a home with confidence and submit a stronger purchase offer for sellers to consider Reduced FHA Premiums • • • For the first time since 2009, FHA Premiums have decreased. 800,000 homeowners will be able to refinance this year. 250,000 new homebuyers will qualify FHA Prior 1/26/2015 FHA After 1/26/2015 $300,000 Sales Price $300,000 $289,500 Loan $289,500 $294,566.25 Financed Loan $294,566.25 135 bps MI Factor 85 bps $322.84 $208.65 Savings Monthly Savings Annually Life of Loan Savings Qualify More Buyers! $114.19 $1,370 $41,108.40 FHA Credit Advantage • • • • • Traditional FHA loans require 640 minimum Fico Prosperity’s FHA Credit Advantage allows Fico’s to 600 Still only 3.5% down payment Reduced annual Mortgage insurance premiums Gift funds may be allowed (depending on credit score) Expands your sphere of influence First Time Homebuyer 3% Down • • • • Conventional financing now allows a lower down payment than FHA financing No Income Limits No Home Buyer Counseling 3% Seller Concessions Conventional 3% Down FHA After 1/26/2015 $300,000 Sales Price $300,000 $291,000 Loan $289,500 $291,000 Financed Loan $294,566.25 4.625% Interest Rate 3.50% $1496.15 Loan Payment $1343.37 N/A (lender paid) MI Factor .85% $0 (lender paid) $1496.15 MI Pmt Total Pmt. $208.65 (360 months) $1552.02 Veteran Incentive Prosperity Home Mortgage, LLC proudly salutes the commitment of Service members, veterans, and military families who have supported and defended our nation. Prosperity would like to extend not only the advantages of a VA home loan, but also additional incentives to help lower the cost of purchasing a home: Show your clients options with our renovation programs. Renovation and repairs rolled into one mortgage. Call our DEDICATED Renovation Department for more details!! Streamline and Standard 203k Conventional Renovation Loans Primary, Second Homes and Investment Piggy Back Loans 80/10/10 Home Equity Line of Credit (HELOC) • 2nd mortgage behind a traditional 1st mortgage • 80% 1st, 10% 2nd, 10% down payment • No Mortgage Insurance • Can draw from HELOC for 1st 10 years • Example- $500,000 Loan Amount • • • • • Home Equity (80/10/10) Option 1st Mortgage Rate: 4.25% 2nd Mortgage Rate: 5.24% 1st Mortgage Principal and Interest Payment: $1,967.76 2nd Mortgage Interest Only Payment: $218.33 Total Payment: $2,186.09 • • • • Conventional Mortgage w/ PMI Mortgage Rate: 4.25% Principal and Interest Payment: $2,213.73 Mortgage Insurance: $221.25 Total Payment $2,434.98 Jumbo Loan Options • • • 20% down Fixed or ARM products with loan amounts up to $2 million$3M by exception 15% down Fixed or ARM products with loan amounts up to $1.5 million No Mortgage Insurance required 10% down Fixed or ARM products with loan amounts up to $750,000 (80/10/10 – No Mortgage Insurance required) – Financing for a primary residence or a second/vacation home – Condos may be eligible • Exclusive Product – PHM 5&5 Advantage – Loan Amounts from $417K to $3M – Adjusts ONCE every 5 years instead of every year after 5 years Offers the low rate of Adjustable with the piece of mind of a fixed rate PHM Agent Tools Website Access: • www.phmloans.com (enter MC website address) • Loan Calculators: Payment, Affordability, Rent vs. Buy • Resources: Tips, Items needed, links • Blog: Latest market information • Real Time Rates Mobile website Access: – – Place on any smartphone Quick access to calculator, pre qualify app, phone/email contact Market Updates Access: • Agent edition e-newsletter (emailed to agents every 8 weeks) • Economic Commentary (emailed to agents every 3 weeks) • Weekly Rate Sheets (personalized for YOU each week) Your Mortgage Team’s websites! www.phmloans.com/kmcclarty www.phmloans.com/tloss www.phmloans.com/rstrecker www.phmloans.com/chorne www.phmloans.com/pwolfe www.phmloans.com/kburgess Summary • Qualify your clients BEFORE they shop for a home by using our exclusive Buyer Advantage FASTRACK pre approval • Qualify more customers with lower FHA Premiums, lower down payments on conventional and jumbo loans and incentives for our military families • State of the art website and mobile website makes us look great as a team • Consistent communication on what is going on in the market so you look like a real estate and mortgage expert to your clients.