- BUY A
- SOUTH STATE
Mortgage Options, Inc. is excited to share the new and improved Home Possible and HomeReady mortgage programs with our clients. Freddie Mac’s Home Possible mortgage and Fannie Mae’s HomeReady mortgage are both programs aimed at helping low- to moderate-income borrowers fulfill their dream of homeownership. While many of the benefits of these loan programs remain the same, the lender-paid mortgage insurance (LPMI) premiums have improved greatly, meaning the overall cost of your mortgage decreases!
First, let’s revisit the highlights of the Home Possible and HomeReady mortgage programs:
While many of these acronyms make no sense to the average person, the bottom line is that you’ll spend less money over the lifetime of your loan than if these factors were different. For example, an LLPA will increase your interest rate over the base interest rate released by Freddie Mac. This increase is determined by how risky the loan is. The LPMI also increases your interest rate, so any improvement in these two factors can lower the cost of your mortgage and your monthly payments.
While both mortgage loans are great options for the low- to moderate-income borrower, the big news is that the LMPI rates have recently improved. These lowered rates mean a lower cost mortgage for you and lower monthly payments. LMPI rates have improved anywhere between 0.4% and 2%, depending on credit score.
At Mortgage Options, Inc., we’re here to help you purchase the home of your dreams. Programs like HomeReady and Home Possible can make this dream come true for many who thought it was impossible. The first step is to set up a free consultation with one of our loan officers. We’ll look at your unique situation and help you understand what you can afford and possibilities available to you.