UWM to cover appraisal costs on 1-0 temporary rate buydowns

Key Takeaways:

– United Wholesale Mortgage (UWM) is offering no-cost appraisals on 1-0 temporary rate buydowns to attract more brokers.
– UWM will cover up to $600 of the appraisal cost on all conventional and government-backed home loans until March 31.
– Temporary rate buydowns allow borrowers to pay a lower mortgage rate during the initial period of their loans, with reduced monthly payments subsidized by an escrow account.
– UWM’s 1-0 buydowns give borrowers a lower payment until 2025, providing brokers with an opportunity to refinance the loan down the line.
– UWM introduced 2-1 and 1-0 temporary rate buydowns in August 2022 and later expanded options to include jumbo loans and 3-2-1 and 1-1 buydowns.
– UWM currently offers seller- or lender-paid 1-, 2-, and 3-year temporary rate buydown options.
– Other lenders, such as Rocket Mortgage, loanDepot, Guild Mortgage, and NewRez, also offer temporary rate buydowns or cover the difference in mortgage payments.

HousingWire:

Michigan-based United Wholesale Mortgage (UWM) wants to court more brokers by offering no-cost appraisals on 1-0 temporary rate buydowns amid fierce competition in the industry. 

The wholesale lender will cover up to $600 of the appraisal cost on all conventional and government-backed home loans until March 31 when a broker uses UWM’s 1-0 temporary rate buydown.

Borrowers with temporary rate buydowns funded by a seller, builder or lender pay a lower mortgage rate during the initial period of their loans, and the borrower’s reduced monthly payments are subsidized with money deposited into an escrow account. The escrow account is funded by either the seller, builder or lender via a lump-sum payment at closing. 

“With a UWM 1-0 buydown, borrowers won’t have a higher payment until 2025, giving brokers a unique opportunity to combat higher rates and possibly refinance the loan down the line. No-cost appraisals are one of the many tactics UWM is offering to give independent mortgage brokers a competitive edge when it comes to building relationships with real estate agents and borrowers around the nation,” the lender said in a news release.

UWM initially rolled out 2-1 and 1-0 temporary rate buydowns in August 2022 for conventional primary and secondary home purchases, as well as Federal Housing Administration (FHA) and Veterans Affairs (VA) primary home purchases.  

Later that year, the wholesale lender provided temporary rate buydowns for jumbo loans, and expanded options to 3-2-1 and 1-1 buydowns. 

UWM currently offers seller- or lender-paid 1-, 2- and 3-year temporary rate buydown options, according to its website

Lenders started rolling out temporary rate buydowns in 2022 to help compensate for lost origination volume due to higher mortgage rates.

Rocket Mortgage, loanDepot, Guild Mortgage and NewRez are among the lenders that either cover the difference in mortgage payments or offer the option of seller- or builder-paid temporary rate buydowns.

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Property Chomp’s Take:

Hey there! Let’s have a chat about

.

is an HTML element that is widely used in web development. It stands for “division” and is used to divide the content of a webpage into sections or groups. It is a versatile element that allows developers to organize and structure their content effectively.

In recent news, Michigan-based United Wholesale Mortgage (UWM) has come up with an interesting offer to attract more brokers. They are now offering no-cost appraisals on 1-0 temporary rate buydowns. This move comes as the mortgage industry faces intense competition.

So, what exactly is a temporary rate buydown? Well, it’s a financing option where borrowers pay a lower mortgage rate during the initial period of their loans. The reduced monthly payments are subsidized through an escrow account funded by the seller, builder, or lender. With UWM’s 1-0 buydown, borrowers won’t have a higher payment until 2025, giving brokers a unique opportunity to combat higher rates and potentially refinance the loan down the line.

UWM initially introduced 2-1 and 1-0 temporary rate buydowns in August 2022 for conventional primary and secondary home purchases, as well as Federal Housing Administration (FHA) and Veterans Affairs (VA) primary home purchases. Later on, they expanded their options to include jumbo loans and additional buydown options like 3-2-1 and 1-1.

The introduction of temporary rate buydowns by UWM and other lenders is a response to the higher mortgage rates that have impacted the origination volume. It provides a way for buyers to offset the financial burden and make homeownership more accessible.

UWM’s decision to offer no-cost appraisals on these temporary rate buydowns is part of their strategy to give independent mortgage brokers a competitive edge. By providing this added benefit, they aim to build stronger relationships with real estate agents and borrowers across the nation.

It’s worth mentioning that UWM isn’t the only lender offering such incentives. Rocket Mortgage, loanDepot, Guild Mortgage, and NewRez are among the lenders who either cover the difference in mortgage payments or offer seller- or builder-paid temporary rate buydowns.

Overall, the use of

in web development allows for better organization and structure of content on a webpage. In the mortgage industry, temporary rate buydowns have become a popular tool to help buyers navigate higher rates and make homeownership more affordable.

That’s all for now! Keep an eye out for more exciting developments in the world of web development and the mortgage industry.

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