Example #1 of how to use this rate: This is a great short to medium-term rate. The closing fees for this rate are lower than the Long-Term rate. This rate is for the homeowners who want the lowest monthly payment possible, but also want to avoid paying too much in closing fees because they are not sure exactly how long they will live in the home. The homeowners are planning to remodel the kitchen and two bathrooms, as well as paint the inside and install new flooring throughout the home. They are getting estimates from $54,000 to $72,000 for their remodel. The homeowners decided against getting a Home Equity Line of Credit (HELOC) because of the adjustable rate and the amount of money they would be borrowing. The homeowners eventually chose to do a cash-out refinance. They will add the $70,000 to their current loan balance. They will be staying in their home long enough to thoroughly enjoy the comfort of their new kitchen, bathrooms, and beautiful flooring, so they decide to invest in this interest rate for the medium-long term. They had their United Real Estate Capital loan advisor calculate the breakeven** point to confirm that this was the best rate for their scenario. **The “breakeven” is the point at which the savings pay for the closing fees. Thank you for considering United Real Estate Capital for your next purchase or refinance. Please reach out to us in the Contacts page whenever you have questions. We are available six days a week for phone calls and seven days a week via email.
Example #2 of how to use this rate: So, you’ve decided to pack it in and sell the house. Great times have been had in this home, but you are ready to move on to the next chapter of your life. It’s a sellers’ market and houses are moving fast; that’s great news for you. There is only one problem… Actually, there are about 8 or 9 problems. You need a new furnace and air conditioner and those DYI repair jobs that you performed in both bathrooms are not going to impress anyone. That duct tape mess under the kitchen sink is a crime. Then there is the paint, carpet, tile, and that avant-garde built-in barbecue disaster in the backyard. It’s going to cost about $47,000 to get your house to the level of the competing houses selling a few doors down the street from yours. You decide to do a cash-out refinance to get the $47,000. It’s best to choose a rate with lower closing fees for a short-term scenario like this. This rate is higher than the Long-Term rate but you are going to sell the home as soon as the improvements are done. The improvements will allow you to sell your home for a much higher price than you would have been able to get without the improvements. Your United Real Estate Capital advisor can confirm if this Short-Term rate is the best for your scenario. Thank you for considering United Real Estate Capital for your next purchase or refinance. Please reach out to us in the Contacts page whenever you have questions. We are available six days a week for phone calls and seven days a week via email.
The below fees are included in the APR calculation
Settlement Agent / Escrow Company fees
Lenders Title Insurance Premium
Credit Report fee
Courier / Wire fee
Document Prep fee
Sub Escrow fee
Mobile Notary Travel fee
Electronic Registration (MERS) fee