07/08/2026
💰💰💰$$$$ MONEY MATTERS$$$$💰💰💰
When the same rate from one preferred builder lender did not mean the same payment, EVEN WITH THE SAME RATE. 🫨
Realtor: Mike, can you look at this something seems off, my client is under contract and the preferred builders numbers appear off something is not right...
Me : Of course, send it over!!
Context upon review:
Preferred lender offering a rate of X charging 2.5 points or their ENTIRE 10k "lender credit" plus 399.63! 🤢🤢🤮 Hmmmm 🤔🤔
Upon further research this preferred wanted them to pay off thousands in debt as well. Borrower really only wanted to bring a certain amount to closing and this was 13k over that amount.
Me: Give me a few to really dive into this, this seems way off.
I get back to the realtor and buyers. "Hey guys a couple of things:
1, I can get you the SAME RATE they are charging you at less than half the cost they are charging.
2, My PMI is going to be 318 vs the 419 they quoted you so your payment is automatically going to be 100 less until the PMI falls off. Assuming no extra payments made that is 1200 a year for 12 years or $ 14,400 saved assuming no principal extra payments are made and the pmi falls of when it is expected to at year 13.
3, I am also going to give you a 1% lower interest rate for free for the first year ( via free 1-0 buydown) so instead of paying 2663.60 in principal and interest, you will pay $2394.64, a 268.96 monthly savings or 3227.52 in year one. Add in the lowered MI and the first year monthly payment savings is 368.96 a month or $4,427.52 less out of your pocket. Get your self a nice outdoor patio and grill.
Lastly , you do not need to pay off any debts and your cash to close is less than what you wanted to bring to closing and 10k less than what the preferred lender wanted you to bring.
Realtor and clients : wow!
Moral of the story who you work with matters!!
Borrowers were getting rate of x with preferred, I gave them the exact same rate at half the cost,and so much more! Potentially 14.4 k less in wasted mi payments ( told them to invest that 100 dollars a month in an S & P 500 fund and see what it is worth in 13 years). Cash out of pocket 10k less as they did not have to pay off anything. The same rate is not the same payment, who you work with matters!!
