Non-QM (non-qualified mortgage) loans may offer discount points on some products. Because non-QM loans have higher base rates than conventional loans, the potential savings from points can be larger.
Availability varies by lender and product type. Bank statement loans, asset depletion loans, and other non-QM products each have different pricing structures. Patrick Kevin Fagan helps clients explore non-QM financing options in San Antonio and the Texas Hill Country.
Availability
Not all non-QM lenders offer discount points. Some set fixed rates with no adjustment options. Others provide a full rate sheet with point pricing. The key is to ask whether the specific non-QM product you are considering allows points. Patrick Kevin Fagan helps San Antonio borrowers find non-QM lenders that match their needs.
Savings Potential
Non-QM loans typically have base rates 1% to 3% higher than conventional loans. This means each point purchase produces larger dollar savings. A 0.25% rate reduction on a $400,000 non-QM loan with a 9% base rate saves more than the same reduction on a conventional 6.5% loan. Patrick Kevin Fagan helps clients calculate the savings potential for their specific non-QM scenario.
Considerations
Non-QM borrowers often have shorter expected hold periods. If you are using non-QM financing to buy an investment property or because you are self-employed, your timeline may be shorter than a traditional homebuyer. The break-even analysis is even more critical. Call 210-317-6514 to discuss whether non-QM points make sense for your situation.
