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.