What is an Extended Rate Lock?
An extended rate lock is a mortgage loan option that allows home purchasers to “lock” in today’s interest rate and guard themselves from the added cost of rising rates before they settle on their new home. A lower interest rate translates into a lower monthly payment, making extended rate locks particularly valuable in a market where rates continue to rise.
First Home Mortgage’s program offers the upfront safety of a locked interest rate for up to 350 days while you wait to settle on your new home!
Who Can Benefit from an Extended Rate Lock?
This is a particularly valuable tool for homes that are under construction. Extended locks secure your interest rate and protect you from the potential of paying a higher rate at the time the home is completed.
What Are Your LOCK OPTIONS?
Fixed Rate Loans: Lock in interest rates for 110-350 days!*
ARM Loans: Lock in interest rates for 110-170 days!*
*Non-refundable up-front lock fee applies. Fee percentage varies based on loan type and length of rate lock.
Want to Learn More?
If you think this program might be right for you, please reach out to one of our experienced Loan Officers today! We’re here to answer all your questions and help you select the best possible loan option to suit your needs!
Buying a home can be a daunting task but buying in a different state can bring a higher level of stress and more of the unknown. We have compiled a list of tips and tricks to help make your buying and moving processes as seamless as possible.
Make Sure You Do Your Research on Real Estate Agents
When you’re buying out of state, you might not be able to go see every property in person. This means you will need to rely more heavily on your agent to be your eyes and ears. If you’re moving to an area where you may already have friends or family, reach out to them for recommendations. If you don’t have anyone to recommend an agent to you, take a look at the top agent lists from the area. This will give you a good idea of who the people in the area already trust with their business. Check out how long they’ve been in business, the areas they specialize in, and, of course, client reviews!
Be Aware of Scammers
Buying out of state will unfortunately open you to being more likely taken advantage of or scammed. A common scam involves the scammer creating a fake listing using real or stolen photos of a property. The goal is for the listing to be too good to be true, encouraging you to reach out and send them money or begin bidding on the home. It is vital to pay close attention to listings and make sure they are listed by reputable agencies or by the actual homeowner.
Don’t Be Afraid to Ask Stupid Questions
Real estate law and best practices vary from state to state. Doing your own research is a good place to start but never be afraid to ask your agent further questions. Buying a home is a big investment and while it can be a very exciting time in your life, you want to make sure you cover all your bases and are fully aware of the requirements each state may have.
Try to Be Present for the Inspection
The inspection is an important part of the home buying process. If it’s possible for you to travel during the process, this would be the time. The inspection will lay out any present or potential issues your home has. Inspectors will take photos for reference but being there in person can give you a better idea of what you’re moving into and as an added plus, inspectors will usually take the time to show you basic home maintenance while doing their inspection.
If you’re looking to buy, check out our website to find a complete list of states we are licensed in and reach out to a Loan Officer today!
What is an ARM Loan?
When securing home financing, some borrowers wonder whether to choose a fixed-rate or an adjustable-rate mortgage (ARM). An ARM is a home loan with an interest rate that adjusts over time to reflect market conditions. With hybrid ARMs, borrowers may access a below-market rate for a fixed term (normally 3-10 years) before their first rate adjustment. In general, the shorter the initial period, the more favorable the introductory rate offered. After the initial fixed period, the interest rate is either raised or lowered depending on the index rate. While many mortgage shoppers choose a fixed-rate loan because of its stability, there are many pros to an ARM loan.
Why Choose an ARM?
Important potential advantages and possibilities to consider with an ARM for the right homeowner or homebuyer include:
- A comparatively lower rate when you purchase or refinance, fixed for the entirety of the introductory period (normally 3-10 years)
- Use your current home equity to get cash through a cash-out refinance while still maintaining a low monthly payment
- Afford a new or larger home with a lower initial payment
- Pay less for your mortgage in a home you plan to stay in long term
It’s important to note that you can always consider refinancing into a fixed-rate mortgage once the initial period ends.
How Can We Help?
First Home Mortgage offers a Jumbo Arm Loan, providing the opportunity of a lower initial interest rate for loan amounts well over conventional loan limits.
The Secured Overnight Financing Rate (SOFR) ARM offers a fixed rate period followed by semi-annual adjustments to the interest rate. Our latest product offers 5 year/6months, 7 year/6 months and 10 year/6 months options.
This valuable loan option is available for purchase and cash-out refinance loan amounts up to $3 million dollars! This means qualifying borrowers may have the opportunity to secure a below-market fixed rate for 5, 7 or even 10 years!
If you or someone you know are interested in purchasing or refinancing a home, please reach out to one of our experienced Loan Officers today to discuss your best options!
Selling your home may be something you’ve been considering for a while or maybe an event has occurred that has prompted you to sell. Either way, listing your home is a big decision and if you’re wondering if now is a good time, take a look at these signs and decide for yourself.
It’s a Seller’s Market
This may be an obvious reason in today’s market but being in a seller’s market means you could stand to make a nice profit on your home. Pay attention to what other homes in your neighborhood are going for and see if the price of square footage is increasing. This could be a good indicator of what your home could go for. Getting in contact with a good real estate agent that can help guide you and assist you in getting a good deal is also an important step!
You’ve Outgrown Your Home
A common reason for moving is simply that your home no longer provides the space you need. Whether your family is growing, or you need more storage, selling may be the only solution. These situations can cause you unwanted stress so listing sooner rather than later might be best for you!
You Have Equity in Your Home
A good reminder here is that selling your home is not free, however the equity that has accrued since purchasing your home will be useful when selling. There are closing costs, agent fees, and of course, the down payment on the purchase of your next home. If you’ve only been in your home for a few years, chances are good you haven’t built up equity beyond the down payment. Unless there is an immediate need to move, staying in your home for at least 5 years could allow for more equity to accrue before selling.
Your Life Circumstances Have Shifted
Inheriting a property, divorce, death, and needing to relocate are all potential life events that can place you in a position to sell as soon as possible. These sudden life changes can put pressure on you but it’s important to still take the time to research your local market and the area you plan to move to before jumping in.
For more information or resources, reach out to one of our qualified Loan Officers today!