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Hello, welcome. Welcome back to the channel, wherever you’re viewing this video. Thank you for spending a minute here with me. My name’s Keith Renno. I’m with Planet Home Lending, and I want to highlight a particular loan program. A particular loan product lenders will call this product different names, planet Home Lending. We call it our first year flex. In essence, it is a one year 1% buydown of the initial 30 year fixed interest rate. And the very unique thing about this product is that the lender pays that cost on a typical two one buydown or a typical buydown in general, the seller is paying that cost or perhaps the builder, if it’s a new construction property, is paying that cost to buy down the interest rate for a year or two. But with that option, you need the seller to contribute towards that cost. With this product, what we call our first year flex, in essence, it’s a one year lender paid buydown and it enables the interest rate on a normal 30 year fix to be 1% less for the first 12 months.
Now, there’s some details with that program. I would say right now in this market, about 25% of lenders offer it. So if it’s not something your current loan officer has presented to you, if it’s not something you’re yet in the know about or if you’re just looking into home buying options, something to discuss with your lender or feel free to reach out, happy to share more information with you about it. But in this higher interest rate environment and with the anticipation of interest rates being lower in the future, to have a payment based upon a 1% lower interest rate from the say standard 30 year fix for the next 12 months, and hopefully rates in the next 12 months or shortly thereafter come down and maybe refinance into a longer term lower say 30 year fixed rate. Just sharing, that it’s a option, it’s a tool in purchasing a home, and I think worthwhile looking into. Thank you for spending again a minute here with me here today. Take care.
Senior Loan Originator
Over the past 15 years as a mortgage professional, closing on average 150 loans per year, I have gained a wealth of knowledge and experience about the mortgage industry. My goal with this website is to give you just the INFORMATION you need about mortgages with ZERO sales pitch. I hope you find my posts of value and share it with 1 other person who might find value in it as well.