USDA Loan "PAR" Rate
5.603%
Rates effective as of 12/07/2023 9:30:00 AM EST, quoted at 12/07/2023 4:53:32 PM EST
NOTE: When getting a loan...the true "PAR" rate does not included:
Underwriting Fees or Origination Charges.
In golf "PAR" is what you shoot for...in lending it's the same...we call it the PAR Rate.
When you buy down the rate by paying Points....think of it as a "Birdie"
When a lender is hiding the Origination Fee into the rate...I call it a "Bogey"
(The lender probably dow not want you to know how much money they made on you).
Besides brokers saving you a ton of money on closing costs...they also have
many more loan solutions like "Golf Clubs" in their golf bag...to get you your home or "Cup".
$726,200 SFR Purchase price with 0% down payment (30 year fixed loan and 780 Fico Score)
- VA Purchase Loan (Not a VA Jumbo Loan) fixed for 30 years
(1st use of Benefit - See VA certificate of eligibility) - Owner Occupied Primary Residence
(VA Loans do not allow 2nd homes or investment properties) - Single Family Residence (Not a condo)
- $726,020 Purchase Price
- $0 Down Payment
- $726,200 Initial Loan Amount
- $15,613.30 Funding Fee
(Not waived - See VA certificate of eligibility - 10% or greater disability waives the Funding Fee) - $741,813.30 Loan Amount with Funding Fee Included
Closing costs can be reduced by choosing a higher interest rate that covers closing costs with lender credits (A "Bogey" that includes costs into the mortgage rate you pay).
A seller can also choose to help cover closing costs so they can sell their home faster.
(Seller's concessions are getting more popular now).
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7.309% origination & underwriting included
102% Loan that covers most or all of closing costs
NOTE: This rate does not have "points" added to lower the interest rate
In this example the buyer is purchasing a primary single family residence (SFR) for $726,200 and getting a 102% loan with a 30 year fixed rate with a 780 Fico Score.
- USDA Purchase Loan fixed for 30 years
- Owner Occupied Primary Residence (Not 2nd Home or investment property)
- Single Family Residence (Not a 2-4 dwelling or condo)
- $726,200 Purchase Price
- No Down Payment (Loan is 102% helping to cover many closing costs)
- $740,724 Initial Loan Amount (102% more than purchase price to cover $14,524 of closing costs)
$13,093.61 Origination paid by loan amount
$1,055 Underwriting paid by loan amount
$375.39 Left over amount that can be useed towards other closing costs - $7,482.06 Financed Mortgage Insurance
- $748,206.06 Loan Amount with Mortgage Insurance Financed
- $14,148.61 Paid by 102% more loan from lender (Amount of loan that covered the UWM origination & $1,055 UWM underwriting)
Closing costs can be reduced even more by choosing a higher interest rate that covers closing costs with lender credits (rolling costs into the mortgage rate). A seller can also choose to help cover closing costs by offering up to a 6% seller's concession on a USDA loan to help the buyer purchase their home.
USDA Loans have the additional following guidelines:
- Income of all household members who are 18 years old & older canot exceed USDA guidelines (Cannot make too much income)
- Property must be a single family residence (No 2-4 units eligible)
- Property must be in a non-uban area
- Property must be owner occupied
- Private wells must be tested
- Properties in a flood zone cannot have septic (must be on sewer connection)
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