Tagged: buy down
October 18, 2016 at 1:50 pm #34541
With such large demand in these NACA offices I am willing to help you through the NACA process in any way I can! From start to finish. I can be here as a mentor, as a friend, as somebody to vent to throughout your process. My phone and email are ALWAYS open. I have had my own unique experience through the program. I have made friends all around the country whom have also had similar experiences(and different). I know people with 0.0625%, .125%, .8%, 2%, 1.1%, the list goes on!! Often times I see, and hear about far too many people who decide to quit the program for various different reasons. I really dislike seeing that because the program simply brings far too much VALUE to pass up on for the other outdated expensive mortgage options filled with FEES & mass amounts of INTEREST!!! I receive emails from people from all around the country and I cannot express how great it feels to be able to talk someone out of quitting the program for various different reasons. Most times all somebody needs is just someone who has BEEN THERE….EXPERIENCED a setback and simply the need to VENT. A SETBACK IS SIMPLY A SETUP FOR A COMEBACK!!!! These NACA counselors are FAR too busy to be dealing with VENTING. I have no problem taking on that task! Bring it on!
Seriously, if your in the DMV area, reach out to me. Kris.firstname.lastname@example.org.
Below I will post a review I have posted many times throughout various different channels:
This organization has changed the course of my familys life!
-Interest Rate: 0.0625%(Yes that is 1/16th of 1%) 30 years FIXED
-NO PMI, MIP etc.
-I paid NO closing costs
-Credit score at time of closing: 598, seriously.
-No down payment required(“Principle Reduction” may be required if you buy the interest rate all the way down such as I did, but this is not the norm) This can get confusing very quickly, so for now just know there is no down payment required initially on loans, only if you decide to buy the interest rate down, and even then depending on how far you buy it down.
Purchase Price: 405k
Loan Amount: 383k
Total Mortgage Payment: $1474
Principle & Interest: $1074
Property Taxes & Insurance: $400
Under $1500 a month for a 6 YEAR old house with 1.33 acres located in Frederick County(little north of the DMV- DC/Maryland/Virginia)
Ill explain this as easy as I can. I paid 25k to the bank upfront to buy the rate from 3.5%~ to about 1.75%. I then put down 22k into a “downpayment” aka “principle reduction” and the bank matched that dollar for dollar in further reducing the rate to the lowest allowed by law through CITI BANK to 0.0625%. This is a fixed interest rate. In addition to the 25k interest I paid up front I will be paying roughly $3000 in interest amortized over 30 years(practically nothing) So total interest paid: 28k on a 383k loan. OH but not so fast… I just received a 6k tax refund solely due to deducting the points paid last year. So make that a total of 22k interest on a 383k loan! YOU CANNOT GET THIS ANYWHERE ELSE! IT IS CRAZY!!! The cost to pay for the interest rate upfront LITERALLY pays for itself in 1.5 years!
The amount of interest and fees I am saving over the course of 30 years is approximately $320,000!!!!! That is CRAZY!
FHA you need a 3.5% down payment, Conventional is what 10-20%? Then you have to worry about PMI and MIP… and another “fees” the banks charge you. Its all a bunch of ludicrous. The banks DONT CARE about you. NACA DOES care about you.
SO your saying to yourself: “WOW!!! There must be a catch……”
Here’s the catch: You must be PATIENT, you must be PERSISTENT, and you must be DETERMINED. Naca doesnt just “give out” this mortgage terms. You have to EARN IT. You have to understand how the process works. You have to put in “SWEAT EQUITY”. The process is not FAST. If your looking for a 123 quick mortgage this program is NOT for you. YOU have to be the one on top of your file 24/7. YOU have to be the one who wants “next level” home ownership REAL BAD. My process took pretty much the same amount of time an FHA loan would have taken, maybe 1~ month longer.
I typically try and speak at workshops in the Baltimore area at least once every 2 months or so. I used to be one of those people sitting in the workshops listening to official home owners talking about the program. Now I get to share my success story with everyone else. Nobody is going to stop you through this program but YOURSELF.
I read all of these negative online. Practically all of them have everything to do with ones own lack of preparation, lack of knowledge of the program, lack of personal responsibility, complaining the process is too slow. Listen, the process WORKS. It really does. It does not work for everyone, but it can. The process is not perfect by any means. The counselors are EXTREMELY overworked. Some counselors may have 100+ people they are trying to assist! The way I look at it, some of the best things in life just TAKE TIME. You cant RUSH greatness.
Listen, I grew up on section 8 housing my entire life as a kid. For the first 9 years of my adult life I was renting one crummy apartment after another. I learned about the naca process in 2010. It took me YEARS to grow into the person that had enough DISCIPLINE to obtain these phenomenal mortgage terms. I developed an immense amount of patience. I made HUGE SACRIFICES. Dont ever let anyone tell you what you cant do. YOU have the ability to decide to go after whatever it is you want in life. My mother lives with me. I feel HONORED to be able to put my mother in such a wonderful HOME. I will NEVER have to worry about forclosure EVER. I am not some “special guy” I am not made of money. I am about as common as can be if you were to pass me on the sidewalk. However, I have this immense amount of DETERMINATION, AMBITION, that you cannot buy at walmart. You have it too! You may just not know it yet!
If you live in the DC/VA/MD area and would like me to assist you through becoming a “next level” home owner, feel free to email me at email@example.com and I will do everything within my power to help you. I can help you locally. We can either meetup, or we can talk on the phone. I can help you get all of your paperwork ready etc. Explain to you from A to Z what the process is going to require. Having someone like me on your side through this process is PRICELESS!!! I have met numerous people throughout the country through this program! Even had a family stop by our house to have lunch on their way to the beach! How amazing!!!
-KrisOctober 18, 2016 at 2:17 pm #34542dangela21Member
Thank you so much for all your input. I’m in the Dallas/Fort Worth area and I have been scaring my ownself by reading so many of the negative post in these forums. You just shut all the negativity down. We need more people like you in these forums. Bravo. Bravo. Bravo.October 18, 2016 at 2:31 pm #34544October 18, 2016 at 2:34 pm #34545
@dangela21 Most welcome!!! Negative reviews will come. However that is not YOU!! It may take 6 months, it may take 3 years. If you want all that NACA has to offer you must be extremely patient. Everyone has individual challenges they must conquer. Feel free to reach out if you ever need works of encouragement/help. I will do my best.October 18, 2016 at 3:14 pm #34546KRich_84Member
@krisfnbs I just shot you over an email! I’m currently located in Upper Marlboro, but I’m looking to purchase in Waldorf!October 18, 2016 at 4:43 pm #34550pratikMember
I commend you @krisfnbs! Keep sharing awesomeness!
For those who wonder about buy-down and 30 years vs 15 years:
Should you buy down out of pocket?
My investment simulations show that it would be best to buy-down to minimum interest rate IF you are planning to stay in the same house for 4-6 years (so, no brainer – empty your savings towards buying down!).
30 years or 15 years mortgage?
My investment simulations show that you will be better off keeping 30 years mortgage (with or without buydown) and invest the difference between 15 and 30 years mortgage. This is because of two reasons: (a) mortgage rates are at historical low – while buying down interest rate is good, but even if you don’t buy down and keep 3ish% APR, you will grow your investment better by saving the difference, even if return of investment is frugal 4%. (b) While at some point there is a break-even between 15 and 30 years mortgage and that 15 year mortgage will lead in terms of investment, but this breakeven point comes at ~22 years (assuming 4% return of investment) or at ~27-28 years (assuming 6% return of investment).
In either case, you will take away more money with 30-years mortgage plan as chances are really low you will keep staying in the same home after 20+ years. On average, homeowner changes house at 7 years in the US. And things are too far away to predict after 20+ years anyway. So, go with 30!
Hope this helps!
October 19, 2016 at 10:45 am #34557October 19, 2016 at 10:53 am #34558
- This reply was modified 4 years, 5 months ago by pratik. Reason: To make it more informative
@pratik – Nice info!
I tell people all the time. I literally could not have got a better deal through the program. 99% of the interest on the loan is already paid off! Even if I had 405k cash to buy the home outright I still would have went through NACA. No brainer. In my case, why buy the house outright to save all the interest instead of manipulating the buy down as low as possible(like I did), spend the 22k in points and then invest the 383k into stocks/bonds etc?
So I of course recommend buying the interest rate down as far as possible. 22k paid in points up front I will never see again pays for itself if I would have went with a 3.5%(at the time) in just 2-3 years or so. Not only that, if I didnt buy the rate down, I would have been limited in the 250k or so range home instead of jumping over 400k.
I could go on and on. The buydown wins practically ALL the time! Unless of course you are the type of buyer that constantly buys and sells every couple years, in which case NACA probably is not the best option for you(considering how much work it takes to go through the process.)
It is really designed for ~7-10+ years of ownership.
-KrisOctober 19, 2016 at 10:59 am #34559
Additionally, I have suggested to some good friends who have a relatively small 401k or investment account(20-40k) To use whatever money necessary to buy the rate down as low as possible. The goal is to get the sellers to give up as much money as possible so the buyer has to come out of pocket less, but that is all variable. I know people who spend $1500/mo in rent, have 20-40k in a 401k/ira and I suggest using whatever money necessary to buy the rate down as low as possible. They think im crazy. Sure the investment account will take a hit, but the extra money they will be saving on the monthly payment can go right back into building up that account. Additionally practically all of the Principle & Interest payment will be going right back in their pockets in equity vs paying the mass amount of interest! Plus they wont be wasting $1500/mo in rent anymore!January 6, 2017 at 1:58 pm #35408
Keep the emails coming! I have received several emails from local DC/MD/VA locals! I look forward to helping each and every single one of you. You can also connect with me on facebook if you have it.
🙂January 11, 2017 at 5:36 am #35521pratikMember
UPDATE: Sorry, I was wrong with my assessment of 15 years vs 30 years mortgage and investing the difference of monthly mortgage. The main thing I missed out was that how much principal is getting paid in the monthly installments. For current mortgage rate scenario (~3-4%) with 6% return on investment, one is ALWAYS better off with 15 years mortgage than with 30 years mortgage from year 1 (saving big on interest, because of mortgage rate differences), and MUCH better with buying down on 15 years mortgage (because of 0.5%/point rather than 0.25%/point). Buying down is better than down payment of the same amount if one is planning to stay in the same house for 5+ years in case of 30 years mortgage and 2.5+ years in case of 15 years mortgage.
So, @krisfnbs, if my monthly incomes allows higher mortgage payment, I would go with 15 years AND buydown (therefore saving buydown money). If I cannot, of course I will still go with 30 years with MAXIMUM buydown possible, as the yields of buydown are better than investment (besides investments being subject to market risks)! Additionally, going 30 years WITH even partial buydown is a better option than going 15 years WITHOUT buydown because of lowered interest rates as a result of buydown. But head-to-head 15 years is better than 30 years as long as interest rates in both the cases are the same.June 30, 2017 at 5:02 pm #38067June 30, 2017 at 5:20 pm #38070TTrumbleMember
Pratik closed at the end of February. He nailed down that 0.0625% rate on the 15-year Freedom Loan too!
Since then he still hangs out here on the forum and is helping other members like you and Rashad have done.
Online Operations, NACA
firstname.lastname@example.orgJuly 3, 2017 at 1:31 pm #38091
Oh now it’s all coming back to me. I just searched his last posted thread. Frickin’ amazing!!
btw, I appreciate the recent referral! We’re going out tomorrow morning to look at a few houses. 🙂January 21, 2018 at 10:22 am #40058
We are currently helping over FIFTEEN families in the DC/MD/VA area!!!!! Our goal is to HELP FIFTY families transition from renting to owning in 2018. ITS ALL ABOUT THE PEOPLE!!!! NACA!!!!!!!!!!!!!
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