Silverton Mortgage Counsels Clients “Marry the House, Date the Rate”
“Finding the perfect home can be hard to come by, but if you find ‘the right one’, consider a less desirable interest rate a short-term issue.”
October 20, 2022
Home ownership is still the American dream, and Silverton Mortgage, a leading direct residential mortgage lender, is advising customers on options to achieve their own dreams, even as interest rates rise in 2022.
“It is important to note that rates are still historically low and are still lower than they were from the 1970s until the Great Recession of 2008,” said Dan Dadoun, president of Silverton. “And while there’s no doubt that this market is tough, we’ve seen worse. People who bought homes in the early 1980s faced rates that soared to 18%. These latest increases are really just a correction after the pandemic, which was a completely abnormal situation for the housing market.
A recent BankRate® survey reveals that nearly three-quarters of Americans rank owning a home above career, family and college as a sign of prosperity. Even with rate hikes, Silverton offers options that allow customers to “marry the house and date the rate.”
“Finding the perfect home can be hard to come by, but if you find ‘this one,’ consider a less desirable interest rate a short-term issue,” Dadoun said. “You can try waiting out the market and refinance if rates drop again, or you can take advantage of other innovative loan programs to buy today.”
Some of the loan program options that potential buyers can take advantage of include:
– Adjustable Rate Mortgages (ARMs), which keep mortgage payments as low as possible during the first years of the loan.
— Silverton’s 2/1 buyback program, which offers sellers the option to buyout the buyer’s interest rate by 2 percentage points in the first year of the loan, then by 1 percentage point in the second year. *
— Down Payment Assistance Programs (DPA) can be a big help. DPAs typically provide assistance in the form of a grant or forgivable loan that can usually be earmarked for down payment or closing costs. DPA programs vary by state and locality. Requirements and conditions may differ by loan and state.
Finally, potential buyers might consider buying a repairman. Coupled with a renovation loan like the Silverton Permanent Renovation Building Loan, which allows the renovation portion to be turned into a traditional mortgage for a set of closing costs, repairers can become the perfect property.
A few other reminders for potential buyers:
— A huge down payment is NOT a requirement; there are loan options that require little or no down payment.
— Being in the same position for two years is also not necessary, which is especially helpful for those who were laid off during the pandemic or for those who sought new opportunities during the Great Resignation.
— Finding the perfect home isn’t the first step to becoming a homeowner, but getting pre-approved is.
About Silverton Mortgage
Founded in 1998, Silverton Mortgage has grown from a sole proprietorship to a recognized leader in the mortgage industry. In 2020 and 2021, more than 9 in 10 borrowers said they would recommend Silverton to friends and family**. Additionally, Silverton has been repeatedly recognized by the Atlanta Journal-Constitution® as one of the best places to work.
Silverton Mortgage also supports many community organizations with team time and resources, including the Silverton Foundation, which provides mortgage and rental assistance to help ease the financial and emotional burden on families with children who have been hospitalized or are receiving ongoing chronic or critical treatments.
All loans are subject to credit approval.
*Example of a 95% (5% down payment) 2-1 buyout loan program with a sale price of $400,000. Loan amount of $380,000, down payment of $20,000 30-year fixed interest rate loan with 3.375 points. Monthly payments of $2,157.60 for years 3-30. First year monthly payment $1,706.37 as if the interest rate was 3.5%, and APR 6.027%. The second year monthly payment is $1925.40 as if the interest rate was 4.5% and 6.027% APR. Monthly payments do not include required mortgage insurance, taxes, insurance premiums or other applicable escrow. The actual payment amount will be higher. The example includes an origination fee of $1,295, an APR of 6.027% and an interest rate of 5.5% for years 3 to 30 of the loan as of 9/13/2022 and a credit score of 720 The interest rate of the note will reflect an interest rate of 5.5% over all years. Rates, fees, other charges and conditions are subject to change. Available loan programs and terms vary by state. The product requires a seller contribution of $8,201.16 to pay the cost of the 2/1 buyout.
Vanderbilt Mortgage and Finance, Inc., dba Silverton Mortgage, 1201 Peachtree St NE, Ste 2050, Atlanta, GA 30361, 404-815-0291, NMLS #1561, (http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, licensed by the NJ Department of Banking and Insurance, licensed by the PA Dept. of Banking, Rhode Island Licensed Lender. License Information: https://silvertonmortgage.com/licensing/. All information is believed to be accurate and is subject to change without notice. Equal opportunity in housing.
**As compiled by Experience.com as of October 1, 2022. Experience.com is a trademark of BuyersRoad, Inc. NPS is a registered trademark of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld.
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