K.C. Mayor Kay Barnes Lauds Local Lenders and Fannie Maemortgagepress.comKansas City, MAMP, Fannie Mae, Kay Barnes,
Kansas City Mayor Kay Barnes commended four local lenders and
Fannie Mae for making Timely Payment Rewards mortgages--lower-cost
mortgages for borrowers with past credit problems--available to
Kansas City families.
"Timely Payment Rewards mortgages bring lower cost financing to
consumers with blemished credit," says Mayor Barnes. "This is a
very important tool in the fight against predatory lending."
"Owning a home is the American dream, but qualifying for a
mortgage can be a challenge, especially if you had past credit
problems," says Bill Brown, director of Fannie Mae's Kansas City
Partnership Office. "We are very pleased to offer Timely Payment
Rewards through our partners James B. Nutter & Company,
Countrywide Home Loans, First Horizon and CTX Mortgage to help more
Kansas City families get on the path to homeownership."
With this new mortgage, qualified borrowers will be able to
finance their home at a rate up to two percentage points lower than
those typically paid by credit-impaired borrowers. After 24 monthly
payments without a delinquency, the borrower's mortgage rate is
automatically reduced by up to one percentage point if they did not
have a 90-day delinquency since the loan's inception.
For example, a borrower with past credit blemishes who obtained
a $100,000 mortgage loan with a non-traditional interest rate of
11.5 percent would have monthly payments of approximately $990 per
month. Using the Timely Payment Rewards mortgage, the rate would be
approximately 9.5 percent for a mortgage payment of $841 per
month--a monthly savings of $149. In addition, if the borrower had
24 consecutive months without delinquencies at the second
anniversary of the first scheduled payment, the borrower's rate
would automatically be reduced to 8.5 percent. Over a five-year
term, a borrower would save more than $11,000.
For more information on Timely Payment Rewards mortgages, call
Fannie Mae's Consumer Resource Center at (800)-7FANNIE.