Wisconsin Mortgage Corporation Launches New Rate Buy Down Program

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Wisconsin Mortgage Corporation Launches New Rate Buy Down Program

For home sellers looking to differentiate themselves in the market, Wisconsin Mortgage Corporation and Shorewest, Realtors® might have to tool to do it. Wisconsin Mortgage is pleased to announce its new rate buy down program called Rate Relief. The Rate Relief program is a unique marketing program centered on seller-funded preferred financing. While the program is primarily offered to sellers listed with Shorewest, Realtors®, anyone financing with Wisconsin Mortgage can take advantage of it.

Here’s how the program works. The seller commits to pay three percent of the purchase price towards a financing package from Wisconsin Mortgage Corporation. The three percent will be used to buy down the mortgage rate and reduce closing costs.

“The Rate Relief program is a win-win for buyers and sellers,” says John Inzeo, vice president of Wisconsin Mortgage. “Buyers will either lower their monthly mortgage costs or be able to buy more house. Sellers will have an advantage by making their homes more attractive to buyers with a lower mortgage rate.”

Inzeo explains further that for buyers, Rate Relief provides a permanent interest rate buy down. Preferred financing significantly reduces the monthly mortgage payment as a result of obtaining a below-market interest rate. Qualifying for a larger home is another advantage of the preferred financing.

For the seller, preferred mortgage rate financing sets your home apart from other homes on the market. Home showings increase due to a higher level of interest from homebuyers. Plus, the target market expands as a result of more people qualifying due to lower interest rates. With the Rate Relief program, sellers also see less negotiating on price and contract terms — especially when the preferred financing is contingent upon receiving a full price offer.

Here’s an example of the savings available to a buyer with the Rate Relief program.

How Much Will This Really Save Me?

Traditional
30-Year Fixed Loan
Sales Price: $389,900
Down Payment: $78,000 (20%)
Loan Amount: $311,900
Interest Rate: 5.50%
APR: 5.59%
Term (in months): 360
Principal & Interest: $1,770.93
Total Estimated Monthly Payments: $2,367.25
Estimated Closing Costs: $1,272
Estimated Prepaids/Reserves: $2,493.97
Cash to Close: $81,765.97

Rate Relief
30-Year Fixed Loan
Sales Price: $389,900
Down Payment: $78,000 (20%)
Loan Amount: $311,900
Interest Rate: 4.375%
APR: 4.45%
Term (in months): 360
Principal & Interest: $1,557.27
Total Estimated Monthly Payments: $2,153.60
Estimated Closing Costs: $1,272
Estimated Prepaids/Reserves: $2,349.77
Cash to Close: $81,621.77

In the above example Rate Relief can help by:
1. Saving with a Lower Mortgage Rate
(Savings below is based on the example above.)
Each Month: $213.66
1 Year: $2,563.92
5 Years: $12,819.60
10 Years: $25,639.20
30 Years: $76,917.60

2. Allow the buyer to purchase more house with a lower interest rate.

Wisconsin Mortgage will be working with Shorewest, Realtors(s) (a family company) to offer the Rate Relief program to its clients and customers. To find out more information on the Rate Relief program or to contact a loan officer call 262/786-5250 or go to wimort.com.

Wisconsin Mortgage Corporation has provided home mortgage loans since 1983. It prides itself in finding innovative financial solutions that meet its customers’ individual needs. Technology ~ and the knowledge to use it ~ has kept Wisconsin Mortgage on the leading edge. Loan officers are available seven days a week.

Wisconsin Mortgage is a subsidiary of Shorewest, Realtors(r) – Wisconsin’s largest home seller.

Categories: Real Estate News

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