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24
Nov
2012

Tips from KW McKinney Realtor Jane Clark on financing that Perfect home. (Part IV)

Written by Jane Clark Posted in Financial Articles

Chuck Miller of First Bank on getting great Interest rates

Tips from KW McKinney Realtor Jane Clark on financing that Perfect home. (Part IV)

Part of a Four part series of interviews with First Bank's Chuck Miller on obtaining the best mortgage rates.

After fourteen years as one of McKinney’s best Realtors®, Kw McKinney Realtor Jane Clark knows that one of the most important aspects of negotiating a purchase contract on that ideal McKinney Home for sale is the financing  package a buyer can bring to the table.  A Buyer with great financing is a low risk buyer and sellers find that very attractive.

The natural next question is: What makes for a low-risk mortgage applicant? Well, we spoke to Chuck Miller from First Bank our local McKinney Mortgage expert to give you some insight. The result is this series of articles you will see over the next few weeks.  So read on to see what it takes to qualify for those super-low mortgage interest rates.

Criteria #4: At least 20 percent equity

If you think about equity from a lender's point of view, here's what you would see: the more equity the homeowner (you) has in their home, the less risk the lender assumes.

To see why, first let's define equity. It is the market value of your home minus any remaining mortgage balance. So, if your home is valued at $500,000 and your remaining mortgage balance is $400,000, you have 20 percent equity in your home. This essentially means that you own 20 percent of your home, and the lender owns 80 percent.

So how does this translate to risk? Basically, if the home's value declines by up to 20 percent, you would lose money if and when you sell. But if the value of the home plummets 21 percent or more, the lender could potentially lose money instead, since the lender owns the rest of your home after that 20 percent.

In other words, if your home value went down by 21 percent and you sold the house or defaulted on the loan, you would lose $100,000, but the lender would also lose $5,000 (1 percent of $500,000 equals $5,000). So, if you only have 10 percent equity, your Mckinney Mortgage lender  is "closer" to losing money because the market only has to decline by half as much (10 percent) before they are at risk.

And here's a newsflash: Lenders don't like to lose money.

So you need to have, in most cases, a minimum of 20 percent equity in your property to get the best interest rate Chuck Miller says.

On a purchase, this means making a 20 percent down payment. On a refinance, this means having 20 percent equity and only taking out a mortgage for 80 percent of the market value of your home.

About McKinney Realtor® Jane Clark,

Jane Clark Realty is associated with Keller Williams McKinney. Your Listing deserves the Jane Clark touch. Jane is a nationally recognized TOP 5 elite producer for Keller Williams. Jane Clark has been featured in national media as a Real estate technology expert. She is a perennial winner of D Magazine’s Best Realtor award and has been voted the BEST McKinney Realtor.  Jane specializes in homes for sale in McKinney and is a successful Allen TX Realtor as well. Jane Clark has been a fixture in McKinney real estate for 14 years and her office is located at

Jane Clark

Jane Clark Realty

6951 Virginia Parkway suite 100

McKinney, Texas 75071

Direct 214-802-4680

This email address is being protected from spambots. You need JavaScript enabled to view it.

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About the Author

Jane Clark

Jane Clark is TREC Licensed (License # 479854) Real Estate Agent associated with the Keller Williams in McKinney Texas. She has been a fixture in McKinney Real Estate for 14 years. She has had some spectacular accomplishments over her long and productive career. Jane is most proud of the fact that she received national recognition as a top 5 elite producer in her five state region. In fact she was number 4 out of over 4000 agents. KW McKinney Realtor Jane Clark is well known  because of her avid pursuit of excellence in customer relations.  However it belies the fact that she is a popular Allen TX Realtor as well. Jane Clark is a perennial winner of D Magazines Best Realtor award and she has been named in McKinney Living Magazines BEST McKinney Realtor poll as well. Here are a few of her other accomplishments. Keller Williams Top Producer of the Year (2001-2012), Named one of the most Successful Real Estate Agents by Inside Collin County Business, 2002-2012) ;member of Agent Leadership Council; Keller Williams North Collin County Top Individual Outstanding Achievement in 2009-2012; Keller Williams North Collin County, Gold Outstanding Team Achievement in 2009 and Double Gold Outstanding Achievement 2010 - 2012.  If You have a house for sale in McKinney or you are looking for an Allen TX Home for sale. You ought to be talking with Jane.  I think you will find that KW McKinney Realtor Jane Clark is the right Real Estate Agent for you!

CBS Marketwatch and Yahoo Finance Called Jane Clark a Top 5 Elite ProducerTop 5 Elite Producer for Keller Williams

CBS Market watch -  On the Best Qualities of McKinney RealtorBest Qualities of McKinney Realtor Shannon Patterson 

To learn more about the Jane Clark Realty Group You can connect with Jane Clark at Google+

mckinney_realtor_blue ribbon1 Voted Best Realtor  "D" Magazine 2006-2012
mckinney_realtor_blueribbon2Top Producer   Keller Williams   North Collin County
mckinney_realtor_blue ribbon3 20+ Years raising a family in Collin County
mckinney_realtor_blueribbon414 years experience  Full-Time Realtor  KW Agent Leadership Council

Keller_Williams_McKinney_logoABRMcKinney_real_estate_equalhousingKeller_Williams_mckinney_Realtor