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FYI
How
We Can Give You Cash At Closing
At Corridor Mortgage Group we can offer our customers what is called "Par Pricing." This is an interest rate for a particular loan product in which no points are charged. Because the markets are always changing, this interest rate will vary from day to day, and sometimes hour by hour, depending on the volatility of the market.
Some of our customers prefer to get a reduction in their interest rate and are willing to pay "discount" points to obtain a lower interest rate.
However, if you are in a situation in which you need extra cash at closing, we can offer you a broker credit by reversing the process and obtaining a higher interest rate. Since the lender pays us a higher amount for a higher interest rate, we can turn around and extend that extra cash to you.
For example, you have a 30-year fixed rate loan of $100,000 with a rate of 7.5% with no points. But you need $1000 extra cash at closing to meet all your closing expenses. By raising the rate to 7.75%, we can then offer you a broker credit at settlement of $1,000.
But how will that affect your monthly payment? In this case, here is how it works out:
Monthly payment for $100,000 at 7.50% = $699
Monthly payment for $100,000 at 7.75% = $716
In this example, your monthly payment is only increased by $17.
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