$250,000 Purchase Comparison Example
*The Fine Print: Mortgage lending is all about the details these days, so here's the "fine print" in type size that's actually no smaller than the rest:
|*||ZERO Loan Cost Options||No Points Option||Lower Rate With Points|
|Rate/APR||3.990% / 4.205%||3.875% / 4.087%||3.750% / 4.969%|
|Monthly Payment**||$1,537.47||$1,522.61 |
$14.85 Less than ZERO Loan Cost
$30.88 Less than ZERO Loan Cost
|Loan Costs |
After Lender Credit or with Points
**Example shows a $250,000 single-family owner occupied WI home purchase, 10% down with a $225,000 30-year fixed conforming conventional loan, 740 qualifying credit score, $4,000 annual taxes, closing on 2/8/2020 (rates and APRs as of 12/10/2019). Monthly payments include $60 for homeowners insurance, $333.33 for property taxes and $71.25 for monthly PMI. Your payment will likely vary from this example. Ask about Accunet’s NO monthly PMI option.
Terms and Conditions
- Accunet’s Zero Loan Cost option is subject to change without notice and subject to final underwriting approval. It is available only on 30-year fixed-rate conforming conventional loans (see paragraph 3 for FHA and VA alternative) used to purchase an owner-occupied single-family-detached, condominium or duplex located in Wisconsin where the Annual Percentage Rate for the loan does not exceed the current Average Prime Offer Rate by more than 1.49%. WHEDA (Wisconsin Housing and Economic Development Authority) loans are not eligible under Accunet’s ZERO Loan Cost option, but are definitely still worth considering because of the WHEDA Easy Close 2nd mortgage which can be used to pay all closing costs. Income limits apply to WHEDA loans.
- There’s a minimum loan amount of $125,000 and maximum of $548,250. Why the loan amount limits? Because your loan amount is key to all the economics of the mortgage industry. If there’s a way we can make a ZERO Loan Cost scenario work for you at a lower or higher loan amount, we’ll do it. There are other Closing Costs in addition to Loan Costs (like your first year of homeowners insurance and money needed for future property tax and insurance payments). You can ask the Seller to pay some or all of these other costs, pay them yourself or use gifted funds from a relative. Your Accunet Loan Consultant will show you all the choices live on-line by sharing his/her computer screen with you.
- On 30-year fixed FHA and VA loans to finance the purchase of eligible owner-occupied properties in all the states we serve including Wisconsin, Accunet will offer home buyers an option with a lender credit up to a $1,200 according to the grid below. FHA maximum loan amounts vary by state and county. We can’t say “ZERO Loan Costs” on FHA and VA loans because FHA loans have an up-front mortgage insurance premium paid at closing which is considered a Loan Cost under federal regulations, and VA loans typically have an up-front VA Funding Fee that’s also considered a Loan Cost. But these loan programs allow borrowers to finance the up-front FHA mortgage insurance premium and VA funding fee, in which case no cash is due at closing for those specific Loan Costs.
- Our program also has some loan type, down payment, credit score and property type parameters to help us prevent your Annual Percentage Rate from exceeding the Average Prime Offer Rate by more than 1.49% on conventional and VA loans and by no more than 1.15% + the annual FHA mortgage insurance premium on FHA loans.
Loan type / property type / down payment / credit score table
Qualifying Credit Score / Property Type
|Loan Program||Minimum Down Payment||Single Family Detached||Condominium||Duplex|
|30-Year Fixed Conventional||3% to 4.99% |
5% to 14.99%
15% or more
|not available |
|30-Year Fixed FHA||3.50%||640||not available||640|
|30-Year Fixed VA||0%||640||not available||640|
- All Loan Costs will be disclosed on the Loan Estimate and Closing Disclosure and on Accunet’s Home Financing Choices worksheet and will be offset by a Lender Credit shown as a separate line item for the ZERO Loan Cost option or any other option that provides the consumer with a Lender Credit
Contact A Mortgage Expert
Accunet is ready to help qualifying Wisconsin home buyers with an option where we cover the cost of the appraisal, credit report, lender’s title insurance policy and closing agent fees. That’s typically $1,188 in cash savings at closing which frees up your cash to buy that lawn mower, kitchen set, big screen TV, or take that getaway weekend trip after you unpack all the boxes.