Consolidation of mortgages with new authorized loan limits

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Mortgage Broker: Liz Bayer, ProMortgage.

Type of property: Single-family house in Lodi.

Estimated value: $ 915,000.

Loan amount: $ 548,000.

Type of loan: 30 fixed years.

Rate: 2.729%.

APR: 2.806%.

History: One of my former clients contacted me to refinance his 1st mortgage.

He also had a home equity loan that he initially wanted to keep open, however, I explained to him that home equity loan lenders take a long time to approve the 2nd mortgage subordination.

In fact, I had just closed another client who needed to keep their second mortgage open and it took the second lender 45 days to approve the subordination AND he also requested an appraisal.


So I convinced my client to consider consolidating his 1st and 2nd into one new loan that was considered a “cash refinance” but with a low loan at less than 60% value AND with many lenders Now allowing us to use the 2021 NEW Loan Limits we were able to lock in a fantastic rate with the higher Fannie Mae / Freddie Mac loan limit amount of $ 548,250 (instead of the 2020 loan limit of 510,400 $).

And to top it off, we got an appraisal waiver that lowered my borrower’s overall closing costs. My client’s payment has gone down by $ 500 per month and $ 6,000 per year!

Liz Bayer, ProMortgage, 415-383-3111, lizforloans@gmail.com.

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