| Interest Rate | Payment | Savings ($) | |
|---|---|---|---|
| A typical Current: Grade C* from other lenders | 6.625% | $1,537 | - |
| Savings 1: 0.125% lower from Home-Account’s lenders | 6.50% | $1,517 | $20 |
| Savings 2: 1.125% rate reduction from improving Grade from C to B* | 5.375% | $1,344 | $173 |
| Total monthly savings based on loan amount of $249,000 | $193/ per month | ||
| Savings 3: lower originations fee from Home-Account's lenders 1% to 0.7% | $720 | ||
| Total savings over the life of loan (360 months) | $70,134 | ||
*What is the Home-Account Grade?
Home-Account's Mortgage Eligibility Grade TM is based on different factors that impact your mortgage including debt-to-income ratio, reserve, loan-to-value, and credit score. The grade ranges from A+ to D-. Grade A+ indicates strongest point of your mortgage eligibility. Other grades mean you're not perfect, and that's ok. Home-Account can help you to improve your mortgage eligibility grade and get your best mortgage.
Calculation Details
- Loan profile including average loan amount of $240,000 is based on average profile of 600+ customers in Charlotte, NC marketplace from 2004-2008 who participated in the grade improvement process used by Home-Account.
- An average of 0.125% lower rate and a reduced closing cost of 0.7% as of 7/31/09 are negotiated rates and origination fee from Home-Account's current lending partners.
- A loan origination fee, is usually one point. – Ginnie Mae
- Loan origination fee: Fee for establishing a new loan. It is paid to the lender for his or her services in originating the loan. The fee usually varies from 0.5% (half a point) to 2% (two points) of the loan amount. – Zillow.com
