Cost Savings Analysis Definitions
1: Based on a $500,000 loan, 30 year fixed rate, improve credit score by enough points to save .25% on interest rate from 6.25% – 6.0%, interest payment savings over the life of the loan.
2: These are actual savings that clients of mine have saved when they got their offer accepted against other competitive higher offers but did not have the same features in their offer.
3: Based on a $500,000 loan, 30 year fixed rate, assuming the negotiation strategies used in this video are applied and the lender agrees to the terms of reduced compensation, saving .25% on the previously best rate offered. This also assumes at least a .25% savings in interest rate by choosing a lender that has a lower commission basis and the lending branch operation has lower overhead. 6.0% – $578,190 interest payments; 6.25% – $608,290 interest payments; Total Savings – $30,100
4: Based on a $500,000 loan, 30 year fixed rate, assuming the seller agrees to offer the comparable amount in seller credit to be used for the purpose explained in the video, saving .5% on the previously best rate offered. This savings is over the life of the loan. 6.0% – $578,190 interest payments; 6.5% – $637,722 interest payments; Total Savings – $59,532
5: While this info is not directly tied to dollar savings, it directly pertains to being able to get qualified for a home loan versus continuing to be a renter. When considering rise in rents, appreciation of homes over time, and tax savings from being a homeowner, this could equate to hundreds of thousands of dollars.
6: Depending on how much current housing payments are and proposed housing payments, assuming monthly housing payment savings of $3,000 for 2 months.
7: There is no direct monetary savings ideas here, but choosing the right lender can make all the difference in your experience.
8: there is no direct monetary savings ideas here, but understanding the difference will tell you what to look for and where to look for savings on your loan.
9: If you don’t know about this, you could literall by leaving thousands of dollars on the table without knowing it.
10: This is where you will learn how to negotiate your settlement fees and reduce your closing costs.
11: The use of this tool could tell you exactly what needs to be done to increase your credit scores, which could save you thousands over the life of the loan.
12: While this info is not directly tied to dollar savings, it directly pertains to being able to get qualified for a home loan versus continuing to be a renter. When considering rise in rents, appreciation of homes over time, and tax savings from being a homeowner, this could equate to hundreds of thousands of dollars.
13: Based on non-conforming loan being at least .125% or more higher in interest rate than conforming loan.
14: Depending on loan amount, interest rate, how many points paid, and how long you plan to stay in the same loan, this strategy could save you tens of thousands of dollars over the life of the loan.
15: How much you pay, or can save, on Mortgage Insurance will vary widely, based on loan to value, credit score, type of property, type of loan. Savings can be significant, if you calculate the comparison correctly.
16: Understanding the options available can be the difference between owning and not owning a home, as well as the potential for lower interest rates and down payment assistance that may be forgiveable.
17: All real estate transactions, whether or not you use a home loan, will require a notary when signing documents. Here is how to save money at this stage.
18: Under the right loan conditions, you may be able to save on the cost of a property appraisal altogether.
19: You always want to know where your credit scores stand, so that you can qualify for the best rates possible. Here is one way to find out your true scores, without the inquiry counting as a ding on your credit score.
20: If you have an auto loan or lease, knowing this strategy can be the difference between qualifying for a home loan or not.
21: Only review this info if you are a minority, and this may or may not apply to your situation, but it’s worth knowing about and worth asking about.
22: Understanding LLPA’s, what they are, how they affect your interest rate, and what you can do to tilt them in your favor, can save thousands of dollars over the life of the loan.
23: Numerous people have been scammed by this strategy. While not common, it does happen. Here is what you need to know in order to not be scammed out of several mortgage payments.
24: Once you have a home loan, there are numerous ways you can be tricked into paying for things you don’t need. Here is what to look for so that you don’t get taken advantage of.
25: While this info does not necessarily save you any money, knowing this strategy can greatly reduce your monthly mortgage payment and improve your monthly cashflow.