The back-to-school season is an exciting time for teachers. If you’re a teacher, you probably spent the summer working on lesson plans, collaborating with colleagues and maybe even spared a moment or two to relax. We know you work hard and we appreciate all the work that you do. As a teacher, you may qualify for our Community Hero Program, which offers special terms and mortgage rates to South Carolina teachers.
Our Community Hero Program offers mortgages with no origination fee, a lower down payment and no PMI. It’s unusual to find a mortgage with all of these benefits, each of which allows you to make the most of your hard-earned salary. Let’s take a closer look at these benefits.
No Origination Fee
Many lenders charge origination fees for a mortgage. This is an upfront fee that is often a part of your closing costs. The origination fee is typically charged as a percentage of the loan, and the fee is often 0.5% to 1% of the mortgage. This can add up to a hefty fee. For example, for a $150,000 home, the origination fee could be as much as $1,500.
Buying and moving into a new home is already an expensive proposition. You need to pay for inspections, appraisals, moving costs and more. By not having an origination fee, you can save $1,000 or more, which you can put toward other priorities.
Lower Down Payment
A down payment of 20% or more is ideal, but it’s also hard to achieve for many people. Our Community Hero Program allows you to make a lower down payment, which gives you more flexibility and a more achievable goal. You keep more of your money while still getting into your dream home.
PMI stands for private mortgage insurance. PMI is usually required when you make a down payment of less than 20%. PMI costs up to 1% of your loan amount each year. For a $150,000 home, that comes to $125 per month, which puts a serious dent in your budget.
The most frustrating aspect of PMI is that it doesn’t benefit you. It benefits your lender. If a lender forecloses on a home, the home is often sold for less than the balance of the mortgage. PMI makes up the difference to the lender. If you have to pay PMI, you’re paying for something that doesn’t benefit you.
By not paying PMI, you’re saving a significant amount of money, which you can put toward your other priorities.
The Mortgage You Deserve
At Arthur State Bank, we know you work tirelessly for the benefit of your students. You deserve the best, and our mortgage is our way of saying, “Thank you.” We’d love to help you purchase your next (or first) home. To learn more, you can request personalized mortgage information on our website.