Home prices have continued to climb every month for the last five years, and this makes it tough for home buyers to find a house they can afford.
However, for renters, first-time home buyers, and current home owners looking to move into a new house, there are two factors working in your favor.
Mortgages are cheap – interest rates are low
Mortgage interest rates have been somewhere around 4% for weeks and are expected to stay in that same neighborhood for weeks more. These are very attractive interest rates for home buyers.
“These are great interest rates on mortgages today. Mortgages are cheap right now, and if home buyers are ready to buy a house, this is the time to do it to lock in that rate,” comments Lauren Gambina, Mortgage Specialist at First Castle FCU.
But what about that 20% down payment?
You don’t really need 20% …
While home prices have been steadily inching up for the last five years, buyers are trying to save for their down payment, and that 20% down payment target keeps moving.
If you started out with a savings target of $30,000 to put down on a future house, you may find that by the time you reach that goal, the market has changed and you may now need $40,000.
At First Castle, we offer mortgage loans that are designed especially for home buyers who have worked hard to save up to put 10% down on a house and are ready to buy a property now before they get to their 20% savings.
FCFCU offers a piggyback loan to help get you in a house faster.
Here’s how it works –
1. The buyer has 10% earmarked for a down payment on a home **
2. The buyer borrows 80% of the home purchase price in a primary mortgage from First Castle*
3. At the same time, the borrower will borrow the remaining 10% in second mortgage in the form of a Home Equity loan. This is the “piggyback” loan.
Both loans are with First Castle which means less hassle for the borrower, and we keep our loans in-house. We are local, and we keep it local.
*10% down plus closing costs required to complete the mortgage
Want to know more?
If you are ready to buy a house, and you have less than 20% down payment, give us a call, and we can talk about your options.
Our mortgage loan experts would love to talk to you! Call us at (985) 867-8867
*At 4.32% APR, 360 monthly payments of $49.60 per $10,000 borrowed. Not every borrower will qualify for the best interest rate. APR based on many factors, including the creditworthiness of the borrower. APR = Annual Percentage Rate
** 10% down of the amount financed. Buyer is still responsible for all closing costs. All normal qualifications apply. Not everyone will qualify for this product.