WHAT INTEREST RATE?

Interest rates for conforming loans are typically the lowest because the borrower’s credit scores are very high as they always pay their bills on time and have plenty of credit and substantial income. These loans require 20% equity in the property, or PMI (Private Mortgage Insurance policy) to be paid by the borrower, which guarantees the equity in property. Therefore, there is little or no risk factor to the lender of losing money on the loan.

Interest rates for non-conforming or sub-prime loans are loans from 80% to 100% of the purchase price. These loans have interest rates slightly higher (1% to 3% - about the same as PMI), as there is no guarantee of equity in the property. The rates are set by the lenders or investors and are based upon the risk factor and the chance that the lender may get the property back for non-payment. This “risk factor” - is higher and is determined by:

-         The credit score - lower scores may indicate borrower’s inability to control credit, habits of paying late, unstable or seasonal income.

-         The higher the LTV (loan to value) – borrowers have very little money invested in the property (percent being borrowed against the property value).

-         The higher the borrower’s debt ratio the less money they have for providing for their families needs and other unexpected expenses. (Percent of all debt divided by verifiable income.)

We specialize in helping you (and all home buyers) to get the very best interest rate and lowest payment based upon YOUR risk factor, which is based upon your individual circumstances.  We strive to get everyone a 100% loan or creative financing to achieve 100% financing regardless of:

1.    LOW credit scores with little or no money for down payment.

2.    NO credit scores with little or no money for down payment.

3.    GOOD credit with little or no money for down payment.

4.    Limited or unskilled income that causes income to become unstable.

5.    Self employed individuals in which their net (taxable) income is low after all the tax deductions are subtracted from their gross income, and income is based upon their business success.

We understand that LOW OR NO credit scores or income problems can often be explained, as they are usually not your fault and are out of your control because of:

1.  Injury or illness of you or family member.

2.     Accidents and deaths.

3.    Divorce or separation with reduced total family income for your monthly expenses.

4.    Job layoff, job cutback or seasonal employment.

5.    Self-employment or lack of employment with sufficient income to support your family’s standards and quality of life.

6.    Bankruptcy – foreclosure of previously owned property.

7.    Economic factors - such as downturns in the real estate market or any other market, oil and gasoline prices, weather conditions, government or state regulations, etc.

8.    No one will give you a chance for credit because of your low credit score.

9.    Many other situations that are out of your control.

The low rates and payments you see advertised on television, newspapers, billboards, etc. are usually:

1.    Based on a 700 or higher credit score. These advertisements are looking for excellent credit applicants and no more than a loan for 80% of the appraised value with no risk factor.

2.    The very low payments advertised are usually “teaser” loans based on less than interest only loans for a few months and are based upon the equity in the property.  The rates are typically based upon refinancing only on less than 80% of the appraised value of your present home in which the lender has little or no risk factor. Most of these advertisements take you to another type of loan they are willing to do at a higher payment amount.  Most often, once you call the lending company and they get a lower credit score than their program will allow, of course the rate and payment amount goes higher - that is, if they will even call you back after they run your credit.

Plain and simple – Mortgage Makers Lending Corp. works to get you the very best rate and lowest payment based upon your current circumstances - with no gimmicks.