Today's Mortgage Rates ~ HOME LOANS ~ 80/15 ~ 80/10 No PMI Loans

hey everyone this is John Spears I'm a mortgage broker in Austin Texas I do loans all over Texas and I wanted to just kind of do this video and talk about something that's really important and that is how we structure the loan you know pretty much every day somebody calls me or several people call me and they really just have one question it's always you know what's your rate or you know hey I'm I live in lubbock or Houston or Austin and just want to know what your rate is well the rates are important but but what I wanted to talk about in this video is that how you structure alone is actually more important in many cases than the rate itself in fact i'd probably say it a different way how you structure the loan could actually save you more money than having a better rate and a lot of times people don't really understand that so I thought well seeing is believing we can just kind of look at a couple of loans and we can see the importance of how we structure the loans specifically as it relates to mortgage insurance now I've been in the business for five years and I've noticed that there are really two types of people when it comes to home loans the first type is really that you know just give me the numbers and then I'll make a decision and for those people what I would just encourage you to do is just go ahead and take five minutes and call me my phone number is 5 12 99 6 8 194 and then or you can just apply apply online and you'll notice if you go to my website the my lending place website I do mortgages I also do refinances and I also do a lot of home equity loans and so every one of these has interest rates associated with them and so I want you to have the best rate but I also want you to see that how you structure the loan is really more important than the rate itself you could just click on the green button and then you'll notice on the application page I make a note that only the federal government has a has a higher level of encryption than this website so this is a secure website and then once you complete this out it just takes them moment you could send me the application and then I'll call you back and we can just kind of look at the nut look at the loan kind of in a short and sweet type of fashion however some people really like to look at the details of the loan and if you're that type of person I wanted to look at the actual mortgage software and let's compare two loans back to back and see which loan is best okay I know mortgage looking at mortgage software is not the most exciting thing in the world but you know buying a home is probably one of the biggest investments that you'll make and so having the right mortgage is so important in fact a lot of times people refinance homes not because they really need to it's because they got into the wrong mortgage so I'm one of those guys that sometimes an you know an ounce of prevention is worth a pound of cure and so if we can get into the right loan from the beginning it can save you thousands and thousands of dollars so let's just look at two different loans that I'm just going to pretend as though you are calling me and you were wanting to buy a hundred and seventy five thousand dollar home let's just look at two loans here in today's world you're going to have to put about five percent down okay so I'm going to show a down payment of five percent there are some people that are offering three percent loans now I offer three percent loans as well however three percent loans have higher payments higher rates and higher closing costs so to keep everyone down I like to just I like to offer five percent but sometimes people they don't have an option they don't really have the full five percent but for this example I'm going to show you a five percent loan another thing is I don't really know when you're going to look at the video but I'm going to use a 6.5 fixed rate I'm a huge believer in fixed rate loans in fact the only way that you can really get an arm for me or an adjustable rate would be as if you specifically asked for it because otherwise I'm just going to assume that it is a that you do want a fixed rate ok five percent down loan you can see I'm using a six point five percent rate now I'm going to put some mortgage insurance in here and you'll notice that the mortgage insurance increases the mortgage by a hundred and thirty four dollars okay let me just put this in a kind of a quick quick and easy email I found that most people just want me to show them a few loans discuss the closing costs and kind of make it simple and sweet so that they don't really have to you know there's no sense in getting pages and pages of amateur ization tables and so forth so let me just put this on an email just as though you and I were doing this loan right now you know when someone calls me they don't really want to listen to a mortgage so I try to just show them show them the numbers as often as possible so in this case you can just see that I'm creating an email if you and I were on the phone right now I would just put your name calm or your email and then I would show you okay we talked about a loan that has PMI so let's look at that as an option and then we have loan number two here loan number three then loan number four and we can look at all the loans and then once we get off the phone I send you the email and everything is really nicely presented in a way that you really know the numbers without having to go through pages and pages and pages of information if naturally if you have a question you can always call me back but I found that this makes it the this is the easiest way to do it now let's look at an OPM I loan okay because that's really what we specialize in here it at my lending places is giving people the lowest payments so that they don't have to pay the PMI you'll notice that I've made this eighty percent loan I put a twenty percent down payment the same it's the same house price at 175,000 now I'm going to create a second lien here I'm going to take the mortgage insurance off because that's what we specialize in here and then I'm going to make a second lien for the same amount of money okay i'm going to use an eight percent interest rate now let me make a quick note here about working with a broker working with the bank some people think that if they work with a bank they're getting a better loan but really to work with the broker is your best option because number one were licensed most people who work at a bank aren't even license you don't know if they've worked there for two weeks whereas a broker we have to meet strict guidelines another thing that's really related to you is we have as a broker more options to show you now when you're wanting to do a no PMI loan you're doing an OPM I loan so you want to work with a broker who has many different loan programs whereas if you go to bank of america they're only going to show you one set of programs not necessarily the best loan for you okay and that's specifically related to second lien rates because brokers have the best second lien rates and you have to do a second lien if you're going to avoid PMI so let me put this on the email but before I put it on the email let me make a really interesting point because this is very important whenever you do an OPM I'll own your payment or excuse me your rate actually goes up on your first lien because it's considered a higher risk loan to do an OPM I loan but I mean I can give you a longer explanation when you call me but just suffice it to say when you're trying to avoid PMI you have a higher rate but you have a lower payment okay now let's look at these two loans side by side and you really understand what I said at the beginning of the email or excuse me the beginning of the video that the way you structure alone is actually more important than the rate because look at this if you were to call me and say hey John what's your rate I might say 6.75 but if you were to call a bank they would say 6.5 now you probably would be tempted to go to the bank because you feel like the 6.5 would give you a lower payment but really the way it structured the 6.75 is actually the better loan for you okay and in this case let's just make let's just do the math here 1185 its $85 less per month now and that's it pretty significant if you're going to keep this home long term let me go ahead and shut the video off right now I really encourage you to call me if you have any questions I'm always a phone call away remember we do mortgages we also do a lot of debt consolidation loans and we're always a phone call away thanks for your time


  • Perhaps you should follow this FHA twitter feed to get the most up to date information: Mortgage bankers, realtors, investors and underwriters follow the feed because the information is directly from the FHA.

  • Please explain different kinds of loans, their pros and cons

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    or the financial side of the economy,[6] which is concerned with buying 

  • Good stuff!

  • Great Video!!

  • Great Video. Check Out Mine:
    Home Loans Made Easy With Wanda Hall.

  • I don't understand why the higher interest rate is better.. Who cares if the monthly payments are less by few dollars when ultimately you will end up paying more due to the higher interest rate.

  • Hey John – You hit it out of the park with this one. Concentrating on long term financial goals and finding the best deal is often different than simply looking for a low rate.

  • Great video, some useful advise , much appreciated , for all interested here is a link to free ebooks on loans :

  • If you are in California, you might want to call my friend. He is a an amazing loan agent, and he is affiliated with one of the largest originators of mortgages on the West Coast. Try his website at MortgageHelpLosAngeles.

  • Check out my channel: LandonTalksLoans

  • hoyl hell this guy is a good sales man, but being in the mortgage industry my sell i see right through alot of his bulshit. GETTING YOUR LOAN THROUGH A BROKER MEANS UR GOING TO PAY MORE IN FEES, BECAUSE THAT LOANS GOING TO JUST END UP AT ONE OF THE BIGGER BANKS IN THE LONG RUN ANWAYS…..

  • Hey Bank of America! You didn't do squat for me and my husband. You promised the world but delivered nothing. So why don't you get off this website and go do somethingproductive??? Like….get an education!

  • That is a great video, you break it down very well.

  • lots of info here

  • A good mortgage is like a work of art.

    mortgageartist. com

    Your path to the best free mortgage information resource around.

  • You are now required to have a PMI on a FHA loan for it's lifetime? Even with putting 20% down? When did this happen?

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