State Heroes : Discount Mortgage Program

After years of no qualifying loans and loans to individuals who didn’t qualify, the marekts finally shook off those types of programs and returned to the basics of sound lending.  Unfortunately there are billions of dollars in mortgage loans that we as consumers will have to deal with.  Mortgage Architects and John Vickers did not participate in securing those mortgages for buyers - not because they were not easily available but because people did not understand what they could be facing in the coming years. After learning how these adjustable mortgages could change in the near future, most of our customers settled for traditional fixed rates mortgages.  No “pay option ARM’s” or “pick a payment” programs here, just mortgages that required qualifying and reasonable underwriting.

We still offer traditional loans with no points, no origination fees and other reduced or waived fees for law enforcement and firefighters under the “state heroes” program. The benefits of this plan can be viewed at www.stateheroes.com”.  Our heroes program began back in 2003 and continues to provide discounts for purchase and refinance loans for qualified applicants.

Today interest rates dropped one half percent on the news that the Federal Government is taking control of FNMA and FHLMC. Along with the reduced closing costs we offer on the heroes mortgage program, this makes home financing much more affordable.  These interest rate reductions include FHA, VA and conventional loans.  Law enforcement personnel, firefighters and EMT staff along with Health Care Professionals now qualify for the State Heroes proram.  For more information call 866 848 5911.

Once again I have encountered mortgage companies offering great below average mortgage rates that are short term buy downs. That means they advertise rates lower than everyone else but they usually adjust after 2 or 3 years. These are known as 2-1 buydowns or 3-2-1 buydowns. The end result is although these are fixed interest rates and can be advertised as such, they are artificial rates because they are increasing. When they finally fix the rate it is usually higher than the market rate for the remaining term of the loan. They also have higher closing costs because there are buydown points to pay. If the rate sounds too good to be true it is probably some sort of buydown. 

Our reduced cost loans for law enforcement, firefighters and EMT personnel are now available in all 48 contiguous States. This includes conventional loans and VA mortgages. There are no discount points and no origination fees on these loans.  FHA mortgages are also included in Florida, Texas, New Mexico and Lousiana - still with no origination fees. We have been closing lower cost loans for law enforcement and firefighters since 2003. As always we will send a good faith estimate of costs for comparison to others before you apply. We do not have an application fee. For more information on this program and to review the closing cost savings please visit www.stateheroes.com. We are available by phone at 866-848-5911.

I looked at some interest rates today on line and it continues to anger me that nothing is done to these companies that advertise “teaser” rates to make the phones ring.  They must be good sales people to convince callers that interest rates went up so much overnight.  Caution continues to be the rule.  Ask for good faith estimates. I recommend that you request a copy of the lock-in which should be readily available. The lock will show the interest rate, terms of the loan and date the lock-in expires. If the company can’t put it in writing it probably doesn’t exist.

I have been closing loans for police officers since 2002 with reduced closing costs and interest rates.  We currently have 5 deputies as part time associates who have learned the mortgage business and are now closing mortgage loans with discounts for law enforcement.  I was given the status of honorary deputy in 2003 in recognition of our dedication to this program for officers.  For more information about heroes loans or possibly becoming a mortgage representative please call John Vickers at 866.848.5911.

Once again I am hearing about fixed rate mortgages in the 4.875% to 5.000% range for 30 year loans.  They don’t exist.  After making several calls I discovered these quotes are for partial term buydowns which means the first year rate is 4.875% the second year rate is 5.875% and then the rate goes to 6.875% for the next 28 years.  If you plan on spending money for “points” which I discourage look at a permanent buydown and compare that to the partial term buydown.  Recovery period on closing costs and points is a very important part of the decision process.  Be careful if they are advertising discounts or special deals for law enforcement, firefighters and teachers if it is nothing more than this type of buydown.  Always ask the mortgage company a lot of questions.  I recommend a minimum of 2 estimates from at least 2 lenders for comparison purposes. You will be amazed how closing costs can vary from one to the other.

It’s offical - Mortgage Architects completed an agreement with a federally chartered bank that allows it’s entities to close purchase and refinance loans within the 48 Contiguous states. We started the State Heroes program in 2003 and it’s success propelled this agreement. The program has become so popular in Florida the propritor of Mortgage Architects was made an honorary deputy of the Orange County Sheriff’s Department.  

The State Heroes program allows both sworn and non-sworn law enforcement personel to obtain a mortgage with low fees and low rates. The program can be used in conjuction with FHA, VA and Conventional loan products. To learn more about the State Heroes program, visit www.stateheroes.com or call 866-848-5911.

Once again we are seeing interest rates quoted that don’t exist.  If you hear about 30 year fixed rate loans in the 5% to 5.5% range be sure to ask about closing costs.  Especially if they say there are no points and no origination fees.  There will be fees somewhere.  Request a good faith estimate in writing.  We welcome the opportunity to send our good faith estmates when requested because our rates are great, our closing costs are low and we guarantee our costs and rates won’t change once locked.  Our guarantee is even in writing on our website at www.mortgagearchitects.com.

Mortgage Architects introduced the Heroes mortgage loan program over 4 years ago.  It is a tangible program that actually provides lower cost loans to qualified applicants.  Some of the closing costs are reduced and some are actually eliminated.  This program is truly a reduced cost loan.  Others have tried to duplicate the Heroes program but be careful because instead of eliminating costs they simply “rename” them with catchy words like design fees.  The APR and the truth-in-lending play an important role in disclosing costs. Usually the higher the closing costs, the higher the APR. The interest rate and the APR (annual percentage rate) should be similar if it is truly a reduced cost loan.  Don’t be shy. Ask for copies of the good faith and thruth in lending. If you are asking about rates on the telephone, ask about points and origination fees too.  Any application fee or broker fee?  All could be charges that are pushing up your costs.  If you have an estimate you would like us to review, call (800) 842-1844 and we’ll take a look.  The bond market had a down close today so don’t be surprised if rates are up .125% in the morning.