Borrowers buy down interest rate on 30year loan to 99%

Loan officer: Alex Greer, the Mortgage Outlet.

Property type: Singlefamily residence in Oakland.

Appraisal value: $ 750,000 ( appraisal waiver).

Loan type: Conventional 30year fixed.

Loan amount: $ 424,000. Rate: 1.999 percent. APR: 2.308 percent.

Backstory: Interest rates are still at alltime lows and a good amount of financial experts and industry professionals believe that interest rates will never be this low again. With these particular borrowers, they went into the process with the same opinion on interest rates.

The borrowers asked what the lowest rate available was and what the points for that rate were. They had no desire in looking at anything else. In this scenario, the lowest rate available was 1.999% for a 30year fixed with 3.6 points. The borrowers didn’t flinch at the costs and said they would talk with their certified financial planner ( CFP) and get back to me.

After a few days, the borrower came back and said they wanted to proceed with the 1.99%. I cautioned them that if rates dropped from where they are now then their buydown would be wasted money. Also, that if they paid the loan off early it would negate some if not all of the benefits of buydown. The borrowers confirmed their desire for the 1.99% and further stated that, along with their CFP, they strongly believed these were onceinalifetime rates nor would they be paying off the loan early.

Common with most refinances today, we received an upfront appraisal waiver from AUS, needed no tax returns or assets and the refinance only took 17 days from start to finish. With that, this loan officially became the lowest interest rate the Mortgage Outlet and myself have ever given a borrower.