The truth is, there is no real formula for this.  At The Perpetual, we don’t start from a place of “how big of a loan can we cram down your throat”. 

Knowledge is power, and you need to be powerful here.  The way you do that is to take control of your destiny.  Put your monthly budget down on paper. Be realistic about your spending habits and lifestyle.  Too many whiskey nights at the bar? You might need to turn down that ratio, dawg.

Figure out what the maximum mortgage payment you can be comfortably numb to is, and during our consultations with you we will help you determine the most appropriate pricepoint for your new castle.

With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.  Advising you on ARM options that are appropriate are part of how we give you the ROCKSTAR TREATMENT.

An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Two commonly used indices are the One-Year Treasury Bill and the Cost of Funds of the 11th District Federal Home Loan Bank (COFI).  We know that was boring, and that you’re already dozing off like 7am Saturday morning after a night out.

You’re unique, just like everyone else.  So this is one of our made-to-measure solutions we give you as part of the ROCKSTAR TREATMENT – we consult with you and give you a custom plan that fits tighter than Cher’s leather bathing suit in that one video we all tried to forget.  Shoot us those digits here on our Contact page and we’ll make this happen for you.

For most homeowners, the monthly mortgage payments include three separate parts:

• Principal: Repayment on the amount borrowed
• Interest: Payment to the lender for the amount borrowed, just like in “Goodfellas”.
• Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
• Private Mortgage Insurance (PMI) for some loans with less than 20% down.

The height of the stacks depends on you, ultimately – but here are some common expenses:

• Earnest Money: The deposit that is supplied when you make an offer on the house. 
• Appraisal Fee of about $500:  this is the cost to get your new place appraised.
• Home Inspection Fee of about $300-500:  This is optional, and we will never require it for your loan.  However, your real estate agent may recommend that you pay for one to make sure the property isn’t all janky.
• Down Payment: A percentage of the cost of the home that is due at closing (no suitcases filled with cash, please).
• Closing Costs: Costs associated with processing paperwork to purchase or refinance a house.

FHA Streamline refinances allow a current FHA borrower to refinance to a lower rate on their mortgage with very little qualifying. No appraisal is required, and generally the borrower must simply meet a minimum credit score requirement of 580 and prove that they are still employed. FHA guidelines actually allow for a borrower to refinance with neither of these criteria placed upon them, but most banks will not do the loan without them. Interest rates are currently VERY favorable for FHA Streamline borrowers, making this a very attractive and low-stress option.

VA Streamline refinances are a great option for badass Rockstar Veterans. These loans allow you to refinance your home with no appraisal to a lower interest rate, and very simple qualification criteria.

The Perpetual and all our Rockstar team members appreciate and respect the heroes that serve our communities; that’s why we came up with The Real Rockstars program.  This gives professionals on the First Responder, Education, and Medical frontlines a token of our respect and appreciation for them in the form of a Lender Credit in the amount of .25% of the loan amount against your closing costs.  In addition, when you are buying a home, if you work with one of our approved Program realtor partners, they will also provide you with a credit of 10% of their commission on the transaction, which can be used to reduce the price of the home or to pay closing costs.  Both credits can save you thousands of dollars on the deal. This can be applied to nearly any loan program we offer at The Perpetual.

The proprietary Black Diamond 100 program that we offer at The Perpetual is designed to help high-earning professionals with substantial cashflow leverage their cash into other investments, like rare Whiskey.  Customized to your needs, this program requires no down payment, a 20 year maximum loan term to build equity in the property quickly, and an initial interest rate fixed for 5 or 7 years to your specifications.

The “DOCSTAR” version of the proprietary Black Diamond 100 program that we offer at The Perpetual is designed to help high-earning Medical Doctors leverage their earnings without depleting their cash reserves.  Made-to-measure in keeping with the ROCKSTAR TREATMENT, this program requires no down payment, a 20 year maximum loan term to build equity in the property quickly, special considerations tailored to physicians, and an initial interest rate fixed for 5 or 7 years matched to your specifications.

Rock & Roll might be kinda primal and primitive, but this program is truly innovative and modern, like some fancy synthesizer with blinky lights and such.  Essentially the way this program works is to provide you with a loan for 97% of the purchase price with a 30yr fixed rate and NO PMI. Then we finance your down payment plus up to another 1% of the purchase price on a small 2nd mortgage at the same interest rate.  This is Rockstar financing for the new generation.