New Mortgage Option Simplifies, Saves You Money
Sunward's new home loan option streamlines the mortgage process by allowing homebuyers to borrow up to 95% of the value of their home with a single loan – without paying private mortgage insurance (PMI).
“PMI is an expense that is of no value to homeowners,” says Mortgage Loan Manager Terri Cocain. “We feel this is a unique loan product that will really benefit our members.”
Generally, when homebuyers make a down payment of less than 20% of the purchase, they have to add PMI to their monthly payments. PMI protects the lender, not the borrower,and typically ranges from 0.5-1.0%* of the loan amount. In the past, Sunward has helped homebuyers avoid PMI by providing a first mortgage for 80% and a second mortgage for the additional amount.
Sunward's new 5/5 adjustable rate mortgage allows homebuyers to borrow up to 95% on a single loan. (Qualified first-time home-buyers may borrow up to 97%, and California borrowers up to 90%.)
More Money-Saving Features
Second mortgages have higher rates and shorter terms. With Sunward’s new 5/5, borrowers can save money because the full loan amount is amortized over a longer term – up to 30 years** – and at an overall lower rate.
The new loan option also simplifies the mortgage process – homebuyers apply for and close on just one loan and have a single loan payment to make each month.
The new 5/5 is available for purchases, jumbo loans, and refinances of Sunward mortgages and those from other lenders.
Sunward began servicing fixed rate mortgages in 2017 and continues to offer second adjustable rate mortgages and Home Equity CreditLines. For our lowest rates, borrow up to 80% with our original 5/5 adjustable rate mortgage.
Our loan officers don’t work on commission; their goal is to help you find the loan that best meets your needs. And all of our mortgages are serviced by Sunward – from application and processing to closing the loan and beyond. When you make a payment or have a question, you’ll talk to the professional, friendly staff at Sunward.
Whether you’re a first-time home buyer, have a growing family, need to downsize, or are looking to refinance, Sunward has a home loan to meet your needs. You can start the no-obligation application process online, by phone, or in person at an Sunward branch.
*Source: Investopedia: https://www.investopedia.com/articles/pf/07/avoid_pmi.asp
**3.875% (4.050% APR) or Jumbo 3.875% (4.045% APR) effective February 19, 2018. Rate and payments adjust only once every 5 years. Rate is variable and can increase by no more than 2.0% every five years with a lifetime cap of 5.0% (the maximum adjustment). 4.00% floor rate applies beginning at first adjustment. Maximum loan-to-value is 97%. Rate for the remaining term adjusts every five years and is based on the then-current index plus margin, rounded to the nearest eighth of a percentage point, and subject to the floor rate. Index is the one-month average yield of the 10-Year Treasury Note. Rates subject to change; check with Sunward for current rates. A $45 initial credit report fee applies to all loans. Third party fees may apply in certain circumstances. Additional fees may apply outside New Mexico. Survey fee may be required. You will receive an estimate of closing costs when you apply. Consult your tax advisor regarding the deductibility of interest. You must insure the property that secures the loan. Fees subject to change without notice. If loan does not close, fees incurred will be charged to the member. APR calculations are based on the following loan amounts for properties located in New Mexico or California: Non-Jumbo: $180,000, Jumbo: $500,000. All loans subject to credit approval. Contact Sunward for details.
