The Meier Team is in regular contact with the professionals (ie, lawyers, bankers, appraisers, title and inspectors) that are party to the sale of residential real estate in NYC. At The Meier Team Monday morning meeting this week, we had a mortgage banker from a money-center bank join us and review their current product offerings. Below are some of the mortgage offerings shared by Ryan Pratt:
1. Payment Reduction – For 30 year conforming loans up to 80% loan to value, the interest rate will be a full 1% lower than the locked rate for the first year. This offer is only good for loans locked between now and March 24th, though it may be extended. For example, if the 30 year rate is locked at 4.25%, the first year’s interest rate would be 3.25% and the balance of the 29 years would be fixed at 4.25%. Clearly, all of the information contained here in this article is subject to change and should be discussed and confirmed with the bank offering the product before any final decisions are made. We are happy to assist.
2. yourFirst Mortgage – Conforming financing options up to 97% of the purchase price. For buyers who complete a short online homeownership course, the interest rate will be discounted by .125% for the life of the loan.
3. Relationship Pricing – The bank has further improved their relationship pricing discount tiers:
– $250,000: 0.125% reduction in the interest rate for the life of the loan
– $500,000: 0.25% reduction
– $2,500,000: 0.375% reduction
– $5,000,000: 0.5% reduction
4. Builder Best – The bank offers rate locks of up to 2 years for new construction or new conversion purchases.
5. Recast – We offer a recast option for borrowers who pay their principle balance down by $20,000 or more and would like to lower their monthly payment accordingly. This is ideal for buyers who are selling another property after they close on their purchase and need a larger loan for a short period of time.
6. Cash Re-coup – This option is designed for buyers who want or need to close all cash but would like to finance post-closing. Normally this would be treated as a cash out refinance and be subject to worse terms than a purchase, however we are able to price and underwrite these loans as a purchase deal as long as the application date is within 90 days of closing.
7. Union Plus and Corporate Affinity Programs – Union members, or their parents or children, may be eligible for a $500 award and mortgage assistance in the event of an unexpected loss of income. Our corporate affinity program offers an award of $500 for our corporate partners (over 350 companies with 16 million employees).
As the Fed looks to push the Fed Funds rate higher today, the products above might come in handy to help mitigate an interest rate increase. Please let us know if we can assist you with your decision on the right financing structure for you.