EDITORS NOTE: More loan programs and improved guidelines are now available… and of course the rates quoted below are expired. If you would like me to review your scenario and provide you with a free rate quote for your home in Washington state, please click here.
I recently met with clients who have saved $100,000 to use for down payment and closing cost for a home in Bellevue. They easily qualify for the mortgage payment with their combined incomes and the both have excellent credit with scores of 740 or higher. They are most interested in seeing what sales prices they could qualify for with the $100,000 they had saved for down payment and closing cost using available mortgage programs.
Rates quoted in this post are as of 3:00 pm on May 23, 2013. Rates are subject to change… and will change. If you would like a quote with current pricing for your home located anywhere in Washington, click here.
In King County, the Conforming High Balance loan limit is $506,000. Any loan amount over $506,000 for a single family dwelling is considered a “jumbo” or non-conforming mortgage.
Conforming High Balance with a Second Mortgage. This program allows up to a total combined loan to value of 85%.
Sales price of $600,000 with a first mortgage at $480,000 at 80% loan to value and a second mortgage at $30,000 up to 85% combined loan to value.
- 30 year fixed at 4.250% (apr 4.381%)
- $2480.60 is the combined mortgage payment (excluding taxes and home owners insurance)
Conforming High Balance with Private Mortgage Insurance.
Sales price of $600,000 with a mortgage limited to $506,000.
- 30 year fixed at 4.125% (apr 4.362%)
- $2633.65 is the mortgage payment with pmi (aka PIMI payment). Taxes and insurance are additional.
Non-Conforming with LPMI (Lender Paid Mortgage Insurance) allows up to 85% loan to value. [Higher loan to values are now permitted – click here for a quote.]
Sales price of $620,000 with a loan amount of $527,000.
- 30 year fixed at 5.250% (apr 5.401%)
- $2910.11 is the principal and interest payment (mortgage insurance is lender paid).
FHA Jumbo has a loan limit of $567,500 in King County. It also has both upfront and monthly mortgage insurance. [As of 2014, FHA loan limits have been reduced].
Sales price of $660,000 with a loan amount of $567,600.
- 30 year fixed at 3.500 (apr 4.158%) NOTE: APR includes FHA upfront and monthly mortgage insurance.
- $3202.34 is the PIMI payment (principal, interest and mortgage insurance).
Remember, with new FHA loans beginning next month (June 3) the mortgage insurance will remain on the life of the loan. That doesn’t mean you can’t refinance or sell it later…it’s not a “life sentence” unless you want to retain the mortgage for 30 years.
Which ever program these clients select is up to them. It’s nice to have options!
There next step, once they select a loan program that suits their needs is to start the loan preapproval process.
I’m happy to review your mortgage options for your home located anywhere in Washington State.