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PostHeaderIcon Seller Mortgage, Refi Rate & Refinance Fee

Seller mortgage is also known as a land contract.  Seller mortgage is when client buys a home and directly makes the monthly payments to the seller instead of a bank. The buyer gets financing from the seller instead of going to a mortgage company or a bank. This can be beneficial because then you can discuss interest rates that aren’t available at banks. This is also good because the seller has a buyer and also some type of income. At the same time, this can also hurt the seller. If a seller is going to do this with a buyer the seller should own the property free and clear, just in case the buyer defaults on a monthly payment. Should this happen it will come back and hurt the buyer financials, and credit.

Refi rates are the rates that a borrower is offered when they are looking to refinance. Rates are what a lender’s yearly price for the borrower to obtain a loan. Refi rates depended on a few different things some being, loan to value, credit score, and also their income. Other things that matter on the rate are what type of loan a client is trying to get being an FHA or Conventional and how long are the terms going to be for. Rates can change from month to month or week to week even day to day but always stay relatively close. When a borrower wants to refinance their current mortgage their goal is to get a lower rate and lower their payments. Rates on a refinance can be very beneficial if they lower than your current rate, it can help make your monthly payments much easier. The borrowers who are able to obtain the lowest rates are the ones with equity in their home and also great credit.

When a borrower is trying to refinance there are some refinance fees. There are many different types of refinance fees. Some of these fees consist of lender fees, third party fees, and pre-paid items. Pre-paid items are not typically known to be fees these are items you pay regardless of refinancing or not. Pre-paids include the borrower’s taxes and insurance of their property. Lender fees are origination, points, application, credit report and appraisal. Third party fees are also part of a refi they are closing costs, title, and title insurance. Refinance fees can usually range from two to six percent of your loan amount. If a borrower is looking into refinance their current mortgage, they can ask the loan officer for a good faith estimate. Also once a certified real estate appraiser does an appraisal and there is enough equity in the home the borrower can role the refinance fees right into the loan.

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