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Last updated on February 2nd, 2021 at 05:18 pm
The nation’s second-biggest lender United Wholesale Mortgage announced on Tuesday that it is rolling out a new loan program that offers borrowers an interest rate as low as 2.5% for both purchase mortgages and refinances.
United Wholesale Mortgage, is both the nation’s biggest purchase mortgage lender and the largest wholesale lender.
UWM works directly with mortgage brokers, who can in turn offer these low rates to their customers.
CEO Mat Ishbia says “Some people said we would never see interest rates drop below 3% on a 30-year mortgage, but it is now available.
We believe that the housing market is going to be strong and we want to do our part to help more people get into their dream homes as we get through this pandemic together as a nation.”
Mat Ishbia said, “Extensions are going to be very expensive. We’re talking about 10 basis points per day. The “Conquest” program is not for every loan but we’re focused on helping you grow your business and dominate.”
For new UWM customers where he plans in offering mortgage interest rates as low as 2.5%.
The average interest rate for a 30-year fixed mortgage currently sits at approximately 3.25%, which is just a few bases points off the all-time low set two weeks ago.
According to Ishbia, the new program’s low-interest rates are more than a full percentage point lower than what was available to brokers just one day ago.
UWM is setting a maximum interest rate lock period of 22 days for this program.
And any broker who seeks to extend that lock period will find that to be an expensive proposition. “Brokers that close loans fast are going to dominate,” Ishbia said.
The sub-3% interest rate will be available on conventional loans, both purchase and rate and term refinance.
But the program is not available for cash-out refis. The program is not available on investment properties.
And perhaps most importantly for mortgage brokers, the program is not available to any borrower that has received a loan through UWM in the last 18 months.
Reference Source: Housingwire
