Now that ... Clinton have canceled their original, controversial ... mortgage deal to buy a $1.7 million house ... what sort of a new loan have they replaced it with?
Not one that most of us ... could dream of walking away with. ... it has some unusually generous terms.
... the Clinton's have signed up for a "3-1" adjustable-rate mortgage - a type of loan that combines a fixed rate for the initial 3 years of a 30-year term, then metamorphoses into an adjustable-rate that can float up or down once every 12 months. ... In the 4th. year ... they'll pay 2.75% points over the prevailing 1-year Treasury rate. ... For the first 3 years the rate will be 7.5%.
...Clintons are making a 20% downpayment. ... the Clintons will be paying 0 "points" ... a deal like this would usually involve 1 point. ... $23,600.
The only way borrowers normally avoid points altogether is to pay a higher note rate. ... the fees are built into the interest rte & paid back over time.
... The big concession ... comes in the ... 20% downpayment.
Most lenders offering super-jumbo loans of $1 million & higher won't allow borrowers to put up just 20%. They require at least 30%, & often 35% to 40%.
...Loan brokers checking "rate sheets" circulated by these & other jumbo lenders ... could find no company offering 20% downpayment deals, even on loans smaller than Clintons' ...
The best deal around for a super-jumbo candidate ... 40% down ... + 2 points & an interest rate around 8.5%.
... "If he were Joe Blow, he'd have a hard time getting that loan. Did he get special treatment? Absolutely."
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