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The Power of Choice When Buying a Home or Refinancing a Mortgage
CrossCountry Mortgage • Mar 31, 2020
Mortgages are not one size fits all. Several home financing programs are available to suit your specific situation
Decisions, decisions. Whether you’re adding items to your Amazon cart or mulling over what you want delivered for dinner from DoorDash, it’s good to have choices. It’s even better to have them when you’re considering a much more significant expenditure like a mortgage (not that tech gadgets and tacos aren’t important—especially tacos).
Buying a home is generally considered to be one of the best investments you can make. Not only does it give you and your family a sense of security and pride of ownership, but it allows you to build equity and bolster your financial standing. The mortgage itself also gives you some flexibility in terms of what you can afford at the outset and what options are available to you down the road.
The trick is to educate yourself on those options and pick the best one for you. At CrossCountry Mortgage, we’re all about helping you do exactly that. Here’s a quick overview of our home loan programs for the two main mortgage scenarios: buying and refinancing.
You’re buying a home.
So, this is it—you’ve decided to take the plunge and purchase a place of your own! Maybe you’ve been renting for years and are ready for the next step in life. Maybe you’ve worked hard over a long career and can now afford that large, beautiful home you’ve always dreamed of owning. Or maybe you’ve decided that rental income should be part of your retirement strategy and you want to invest in real estate.
Clearly, there are many motivations for purchasing a home. To support those various goals, CrossCountry Mortgage offers a broad portfolio of purchase programs:
Choose a fixed or adjustable interest rate with a conventional mortgage.
- Put only 3.5% down with an FHA home loan.
- Turn that fixer-upper into your dream home with an FHA 203(k) rehab loan.
- Buy that luxury or high-cost home with a jumbo loan.
- Buy a rural country home with no down payment required with a USDA home loan.
- Get 100% financing for military veterans with a VA home loan.
- You’re refinancing an existing mortgage.
Already own a home? You may be surprised at what you can do with your existing mortgage.
From refinancing to lower your rate and monthly payment to consolidating debt into one loan, refinancing gives you a wealth of options to put yourself in a more beneficial situation, including:
- Lowering your rate and monthly payment with a conventional refinance.
- Lowering your mortgage insurance premiums with an FHA Streamline Refinance.
- Addressing a situation where you owe more than your home is worth with a HARP refinance loan.
- Accessing funds for repairs or special purchases with a home equity loan.
- Supplementing your retirement income if you’re 62 years or older with a reverse mortgage.
- Lowering the interest rate on your existing Veterans Administration mortgage with a VA Interest Rate Reduction Refinance Loan.
Refinancing can reduce your monthly payment initially, but that doesn’t always mean it will save you money in the long run. Fees and interest rates need to be considered when calculating if your new mortgage will save you money over the entire life of the loan. A licensed loan officer will be able to help you decide if refinancing is right for you. We’ll help you calculate at which point you will break even and begin to save.
You’re not alone!
Even with all of this information at your disposal, chances are you’ll still need help identifying the right loan program for your specific situation and personal financial goals. That’s what I am here for! I will guide you toward the right decision by helping you understand the available options and will walk you through the home financing process from start to finish so you know exactly what to expect.
When you’re ready, start the conversation. I am here to make the mortgage process easier for you!
‘Tis the season for cold weather maintenance.
Communication is one of the most important aspects of the home loan experience. Learn why regular contact with your loan officer is imperative to homebuying success.
Maybe it started as a little daydream after you flipped through the latest issue of your favorite home décor magazine. The thought of those gorgeous green soapstone countertops in your kitchen just wouldn’t go away. Then you found yourself showing the spread to your spouse with a wistful sigh, saying, “Wouldn’t that look amazing?” Before you know it, you’re both talking excitedly about new ideas for a dream kitchen. This is the moment of conception for your home renovation, and it’s full of possibility and promise. But this conversation of the future has to return to the present day before spinning out of reality’s orbit. As with any big life decision, it’s important that you first undergo a thorough reality check to make sure it’s the right big life decision. When it comes to home renovations, the reality check takes the form of a sensible budget.
HousingWire reported on Sunday that the Federal Reserve made its second emergency cut in two weeks, slashing 1% off its benchmark rate. The Fed also renewed a program to buy Treasuries and mortgage bonds in an effort to bolster the economy as the coronavirus that causes COVID-19 spreads in the U.S. Many consumers assume mortgage rates mirror the Fed rate. In an extensive article posted soon after Sunday’s cut, Mortgage News Daily’s Chief Operating Officer Matthew Graham explained why this is NOT the case. I encourage you to read the entire article for the complete details, but here are the primary takeaways: The Fed did not just cut mortgage rates. Mortgage rates often move in the opposite direction as a Fed rate cut/hike and did exactly that at the end of last week. You may be able to get a lower rate at some point in the coming weeks, thanks to the Fed’s reinvigorated mortgage bond buying efforts. Make sure your originator has what they need from you in order to lock when and if your desired rate becomes available. Speaking to that last point, the best approach for now is to make a game plan. Let's connect today so you’re ready to seize the moment and get the lowest rate possible on a new home purchase or refinance. Just know that rate is NOT near zero right now, even though the Fed’s rate is.