By taking advantage of a “Temporary Buydown Mortgage,” you can move forward with purchasing that new home now!
What is a Temporary Buydown Mortgage?
The temporary buydown mortgage is a payment feature that allows a temporary one-two or three-year rate reduction. As interest rates have increased, the temporary buydown mortgage is becoming a popular option for homebuyers.
There are different lengths of temporary buydown mortgage available ranging from one to three years.
The temporary buydown mortgage lowers the buyer’s monthly payment for the first one, two or three years; dependent on which temporary buydown mortgage is right for you.
The temporary buydown mortgage is available on Conventional,
FHA, VA, USDA and some Jumbo loans.
The temporary buydown mortgage may be used on purchase loans only and is a fixed rate loan.
When using a buydown mortgage, the seller or builder pay the buydown costs at closing.
Funds paid at closing buy the seller or builder are placed in a separate escrow account and then applied to the buyer’s payment each month for the time period of the temporary buydown.
Temporary buydown funds may not be used to pay for late mortgage payments.
No prepayment penalty.
If a buyer refinances or sells the home prior to the end of the buydown term, any funds left in the temporary buydown escrow account will be credited to the principal payoff of the mortgage loan.
For additional information or to see if this is a good option for you or a prospective client, please contact Kathleen today. 916-722-0395, kathleen@wcmtg.com
*This month’s blog is being shared courtesy of Jeff Sipes and Blue Water Credit.
The number of credit cards is skyrocketing across the U.S. these days, as consumers turn to debt to ease the pain of inflation and credit card companies look to cash in. In fact, in Q2 of 2022 alone, there were almost as many brand new credit cards issued as people over 18 in America!
With each of those new cards, the bank, credit scores, interest rate, reward points or miles, and how we use them will differ, but one thing is consistent: the credit card companies know what makes you tick, and they prey on that to entice you to open more cards and rack up more debt.
Today, let’s cover just 5 of the many tricks and tactics credit cards use to drag you in.
Sending out preapproved offers.
Credit card companies routinely mail out millions of preapproved offers every month, and these days it’s even easier because they can email them out to you as well.
But what does “preapproved” really mean? In fact, that terminology basically just means that a bank, lender, or credit card company purchasd your data (usually from the credit bureaus!) based on specific criteria. They may request everyone in the Sacramento area with a credit score over 700 and no bankruptcies, for instance (although that’s simplified).
If you match those criteria, the creditor considers you “preapproved” and can send out offers with that verbiage. But you STILL have to apply for a new account, and they still have to approve you. They can actually deny you (or just change terms and limits) once you respond to their preapproved offer!
Reward points and cash back aren’t very rewarding.
Everyone loves to boast about how many reward points or cash back they’ve accrued with their favorite credit card, but do they really add up in your favor? According to analysts, one credit card point only has a real-world value of around one penny. Not so enticing anymore, huh?
With most cards, they’ll assign one point for every dollar you charge, so you’re getting one cent back.
Of course, they know that you’ll end up paying far more than one cent in interest for that same dollar you charge, not to mention that cards with rewards points or cash back often have high annual fees that counteract any financial benefit.
Sneaky!
Your fixed rate may not really be set in stone.
Credit card holders are largely in the dark when it comes to what their actual interest rate is. Of course, there are plenty of introductory offers and fixed rates promised when you sign up, but that’s misleading.
A credit card fixed rate isn’t “locked in” like the rate on a 30-year mortgage, for instance, but it just means it’s not directly tied to a benchmark (as is the case with variable rates). But your credit card’s fixed rate CAN change, and it’s basically just at the credit card company’s discretion, as long as it’s outside of the introductory period.
That’s right, deep in the fine print is a clause that allows your card to bump up your APR just about any time they want, as long as they send you formal notice.
Do you really think you’re paying 0% on 0% offers?
Credit card companies and lenders flood us with offers for 0% financing, everywhere from in our mail to at the mall to online.
But do you think that an offer for 0% financing really means you end up paying 0%?! Of course not!
The critical element of 0% offers is that there’s typically a key deadline by which you need to pay it all back, or else interest payments do kick in, including for past months. Of course, they don’t inform you of that deadline or those terms (other than buried deep in the fine print), and they certainly won’t remind you.
Add it all up, and 0% financing usually means just deferred interest payments – and when they do kick in, they’re a whole lot higher than typical financing offers, often as high as 25%!
Point-of-purchase offers are traps.
This is all-too-familiar; you’re in line at _______ (insert name of your favorite store here) with a sizable purchase stacked up in your cart.
The friendly and smiling person working the cash register asks you, “Would you like to apply for a ________ (insert name of your favorite store here again!) card today and get a 10% discount?”
It sounds good – and the savings could be significant on your purchase that day.
Retailers and financing companies understand the psychology that will entice you to say yes. They want to cultivate the pressure you feel to make a quick decision, limit the time you have to think about it, and have the discount dangled in front of you only when your final bill is being tallied.
Notice how they offer that at the cash register when you’re checking out – not when you’re first walking into the store!
And once you do say yes and sign up, that 10% discount one time will probably cost you exponentially more in finance charges and even fees down the road.
*** These are just a few of the seemingly endless tricks and tactics the credit card companies employ against you every single day!
Thank you, to Norm Schriever, Jeff Sipes and Blue Water Credit for sharing this valuable information.
For many people, the day after Thanksgiving is the beginning of the Christmas season which can be a very busy time of year. The weeks between Thanksgiving and Christmas are filled with school pageants and programs, office and neighborhood parties, family photos, family arriving from out of town and let’s not forget the shopping!
This should be a joyful, happy time with all of these fun events. But in today’s world where many of us are busy with work, family obligations, appointments, kids sports and more, the addition of parties and extra planning for events can put a strain on our already busy schedules.
Before you begin adding events to your calendar, grab a cup of coffee, and check out the ideas below! We’ve got a few tips for time saving meals, ideas for clutter-free gifts and a few Holiday events in and around the Sacramento area that you might just have time for.
Easy Meals:
Use an hour of your weekend to do some meal prep for the week. Opt for things that can be made in double batches. Casseroles, soups, lasagna, spaghetti sauce. Use one batch during the week, label and freeze the second for later in the month.
Rotisserie chicken. Need I say more? These can be used for a variety of meals. Buy two. One for the night’s dinner with easy sides and the second to shred and use later. Divide, wrap and freeze leftovers for chicken tacos, nachos, chicken and rice, chicken noodle soup and more.
Use your crock pot. Don’t forget to use a crock pot liner for easy clean up. 1 good sized tri-tip or pot roast, sprinkle a packet of dry ranch dressing mix and a packet of beef, mushroom or onion gravy mix over roast, pour 1 can of beef broth over the top and cover. Cook on low heat 6-8 hours depending on the size of the roast. Add an easy side dish for that night’s dinner and save the leftover meat for tacos, nachos, or stroganoff later in the week.
Sandwiches. Pick up a variety of deli meats, cheeses, different types of breads or sandwich rolls and let everyone create their own masterpiece.
Pizza is a given when it comes to those busy evenings when there isn’t time to prepare a meal.
Clutter-Free Gifts:
Think outside the box when it comes to gift giving this year. Gifts for experiences, classes, services, memberships and consumables are all great options.
Concert tickets
Sporting event tickets
Escape room
Train excursion gift certificate
Ax throwing session
Movie gift card
Cooking classes
Dance classes
Art or painting classes
Jewelry making class
Massage certificate
Manicure/Pedicure certificate
Membership to your local zoo
National Parks membership
Horseback riding lesson
Pottery painting session
Stamps, fancy pens and assorted greeting cards
Homemade treat basket
Mini succulents
Fruit basket
Homemade coupon for a babysitting session
Offer a home cooked meal for a senior
Upcoming Holiday Events In And Around Sacramento:
Old Sacramento Holiday Tree Lighting. Wednesday November 24th the fun begins at 5 p.m. at Front and K streets with entertainment and family-friendly festivities leading up to the free, public tree lighting ceremony at 6 p.m. Immediately after the tree lighting, watch the first 2021 performance of Theatre of Lights featuring a live dramatization of “Twas the Night Before Christmas,” on the balconies above K street, complete with a special appearance by Jack Frost.
Trans-Siberian Orchestra, Christmas Eve and Other Stories. Friday December 3rd 3 p.m. Golden 1 Center.
Winter Wonderland at Fairytale Town. Saturday December 11th 1-7 p.m.
Holiday Weekends at The Old Sugar Mill, Clarksburg. Weekends, beginning November 26th 10 a.m. – 5 p.m. Shopping, live music, outdoor wine tasting and more.
Christmas Light Promenade, Folsom Historic District. Friday, November 26th-Monday, November 29th.
Breakfast with Santa, Joe’s Crab Shack. Saturday, December 11th 8-10 a.m.
Brunch with Santa, Rusch Community Park. Sunday, December 12th 10 a.m.-1 p.m.
Downtown Roseville, Christmas Tree Lighting. Thursday December 2nd 6-8 p.m.
Elk Grove Holiday Parade of Lights. Saturday December 4th 6 p.m.
Downtown Sacramento 38th annual Santa Parade. Saturday, December 11th 10 a.m.
River Fox Train, Magical Christmas Train. *check website for dates and details.
As always, check each event online for details regarding hours, reservations, tickets and any Covid related guidelines. Don’t forget to check out info online for Christmas light displays in areas such as Downtown Sacramento Fab 40’s, Dovewood Court in Orangevale, Pebble Creek Park area of Rocklin and more!
Santa will be making the rounds beginning at 6 p.m. through the following areas in Roseville:
Tuesday 12/7 Blue Oaks/Maidu
Wednesday 12/8 Highland Park/West Park
Thursday 12/9 Main Street/Woodcreek
Tuesday 12/14 Douglas/Darling/Heritage Oaks
Wednesday 12/15 South of Cirby/Stoneridge
Thursday 12/16 Diamond Oaks/Westbrook
No matter what you do, try to focus on time spent with those you love and remember…
“Maybe Christmas” the Grinch thought, “doesn’t come from a store. Maybe Christmas, perhaps…means a little bit more.”
Sacramento Mortgage Lender 