CalSTRS Interest Rates and Rate Lock Guidelines
CalSTRS Home Loans May 10th, 2008
CalSTRS Interest Rates are set by CalSTRS daily. There are no “rebates” offered to lenders for passing through higher interest rates as a way to provide low interest loan options to eligible CalSTRS borrowers. All lenders offering CalSTRS loan programs will offer the same interest rates or it is not a CalSTRS loan.
Locking the Interest Rate will secure guarantee the rate for 45 days at no charge. A free 15 day extension will be permitted should you not close on the purchase within the 45 day period.
A One Time Free Float Down is available if market conditions improve after you have locked your interest rate. A float down occurs when you “re-lock” your interest rate at rate lower than your original lock. You can do this one time only at any time within the first 45 day rate lock period.
Click here to check today’s CalSTRS Interest Rates
Property Changes require new rate lock.
No fee for Cancellations
Posts
July 29th, 2008 at 2:32 am
I would like to purchase a second home and rent the one we are currently live in.
Which is the best loan for me?
The purchase price of the home is $480,000 with a 10% down. I want to avoid paying pmi.
July 29th, 2008 at 3:35 am
Hi Ana,
There are some new underwriting rules beginning on August 1st that makes it very difficult to qualify. I would recommend you call Rick Kent at 866-667-6724, he’s our program specialist and would be able to help.
Here are the challenges you are looking at:
The new rule requires that you qualify for the new loan using both payments. You used to be able to use rental income to offset payments but too many people were making up rental agreements to buy a new home then letting their old house go into foreclosure.
There are two more challenges. Any loan over $417,000 is extremely difficult to do and any loan to value over 80% requires mortgage insurance.
Call Rick or leave me your phone number and I would be happy to do more research and present you with your options.
Scott