Skip to main content
Back to LendSure Blog

Unique ways to lower borrower’s mortgage payments

May 11, 2022

As a mortgage professional, you always want to find the very best solution for each of your clients. Your client may be a first-time homebuyer or a property investor (new or seasoned). They may be looking to make a purchase or get a cash-out refinance.  Perhaps your client is just looking for a lower rate or lower monthly payment.

In today’s environment, offering competitive rates isn’t always enough to win deals. You need to structure loan deals that work for each borrower’s unique needs.  The process of structuring a loan, considering broker compensation, rate buydown, interest-only options, and alternatives for maximizing monthly cashflow, can feel overwhelming.

That’s where LendSure can help. When you work with LendSure, you enjoy a partnership that will help you structure the best loan options available for your borrower. For example, when you offer your clients one of our wide variety of non-QM mortgage solutions, we can stack your compensation on top of the loan, reducing your borrower’s cash needed at closing. In every loan scenario, we look at the big picture and make commonsense decisions that serve your individual borrowers well.

Some borrowers are rate-sensitive, others are looking for long-term stability, and some want the best of both worlds. No matter what type of loan scenario you’re working through, depend on the specialists here at LendSure to offer you solid strategies and numerous loan programs to meet your borrowers’ needs. We can help you structure loans using a combination of interest-only, rate buydown, stacking, and multiple income sources, all with our commonsense underwriting approach.

 

LendSure offers a variety of approaches to help you secure the best possible loan options for your borrowers:

Interest-Only: LendSure’s interest-only loan option is a great tool for optimizing investor cashflow and offers the lowest monthly payment initially, without decreasing the loan’s interest rate. LendSure offers a five-year interest-only product with a subsequent 25-year amortization, or a 10-year interest-only product with a subsequent 30-year amortization, the latter being a very popular product with a 40-year total term.

Investor Cashflow / DSCR: For qualifying investment property loans on rental income alone, LendSure’s DSCR loan is an outstanding solution. Verifiable rental income divided by PITIA gives a ratio (called DSCR or debt-service coverage ratio) used to determine pre-qualification. Up until recently, the minimum ratio in the market was 1.25, but was lowered to 1.00, and we can even go as low as 0.75 with compensating factors. That means more approvals for more clients. This type of loan requires less documentation than others and does not include a tax return review. To help your borrowers qualify under this program, they can use interest-only payments to lower the debt service and resulting ratio.

Rate Cutter: LendSure’s Rate Cutter option allows points to be financed into the loan with no offsetting charge. The loan amount is increased to cover the points without any penalty for moving into a new LTV bracket, something that could otherwise affect pricing. These points can be used for your broker compensation, rate buy-down, or a combination of both. For the borrower, this potentially means a lower interest rate, a lower payment, and less funds they need to bring to closing.

The Rate Cutter option is available for original loan amounts up to 85 percent LTV, with a maximum 2% additional LTV. LendSure’s knowledgeable team can help you navigate this process and build loans together. These solutions are very powerful for borrowers. Less out-of-pocket cash for borrowers at closing means they can recapture costs in a shorter amount of time. Done correctly, Rate Cutter is a tool that can offer outstanding solutions for your clients and is a feature available across all of our programs.

A different approach: With LendSure’s DSCR plus Rate Cutter option, the purchase price stays the same, but the loan amount goes up. Why? With a reduced interest rate due to point buy down, these options ensure good pricing for the borrower, allows the loan to qualify with current guidelines, and generates cash flow for the property owner. Reduction of interest rate lessens burden of DTI and lowers payment for the borrower. This makes for incredible savings over the life of the loan.

With LendSure, it is possible for your buyers to enjoy the best products available with the options to meet their unique needs. Our non-QM specialists can structure loans to include all broker compensation in the loan amount, while reducing the borrower’s rate at the same time. This saves your borrower’s money at closing and reduces their monthly payments. Tight DTI ratios, reserves, and asset calculations can also be softened by using these options. All of this means more loans can be qualified, more borrowers can obtain their desired homes, and mortgage professionals like you will be able to say “yes” to clients more often.

Timely pre-qualification: When seeking ways to find the best product options for your clients, you don’t have to navigate the details alone. Our team of non-QM specialists can help you structure loans at the front end, and will provide your clients with multiple loan program options. Our exceptional pre-qualification process is used for all of our loans. This leaves you with great confidence in the approvals that you present to your borrowers. Our team helps you through the process as quickly as possible. In fact, it is our goal to ensure there are no changes or surprises once the loan is submitted.

 

When working with LendSure, you will be able to serve many more creditworthy borrowers who will enjoy better pricing and loan options. Helping your borrowers use their equity to achieve lower debt costs is just one of the ways we do commonsense lending.

LendSure was founded in 2015 and is headquartered in San Diego, California. With several regional support centers to serve brokers like you, we deal primarily with non-QM loan products and focus on loans with solid benefits to borrowers. We serve “A” paper creditworthy borrowers, whether it’s asset depletion, DSCR, bank statement loans, or another non-QM product.

As a non-QM lender, we offer you our vast knowledge of the non-QM sector to help you expand your product options, and are able to offer competitive pricing, lower mortgage payments, and customized solutions to your clients and referral partners.

Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.

 

Contact Us: (888) 707-7811