Commonwealth mortgage lending review for 2021

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New Fed Mortgage recently acquired Commonwealth Mortgage, which is a division of New Fed Mortgage Corp. Commonwealth Mortgage offers a ‘best rate’ guarantee program: applicants can get 500 dollars if they find a better mortgage deal elsewhere.

At the time of this review, the Commonwealth Mortgage website was very limited to information on products, rates and fees. When we spoke with a Commonwealth representative, they told us that the company is the same company as New Fed Mortgage and can only provide details on New Fed loan products.

That being said, New Fed Mortgage is a Massachusetts-based mortgage lender founded in 2000. The lender offers home loans in 15 states across the country. In 2017, Banker & Tradesman named it the Best Mortgage Company in Massachusetts for 2017.

Borrowers will find several types of mortgages in At Commonwealth and New Fed, including regular, large, and government-backed loans, whether they are looking to buy a home or refinance an existing mortgage. Here’s what you need to know about Commonwealth and New Fed mortgages before applying for a home loan.

Pros and cons of Commonwealth Mortgage, a division of New Fed Mortgage Corporation

Minuses

  • Only available in 15 states: Connecticut, Florida, Illinois, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Hampshire, New Jersey, North Carolina, Pennsylvania, Rhode Island, Tennessee, Virginia.

  • There is no way to get the estimated rate or approximate closing cost unless you complete the full mortgage application form and agree to a hard credit appeal

  • Access to the branch is restricted to the states of Massachusetts and New Hampshire.

  • Limited website functionality

Commonwealth Mortgage, a division of New Fed Mortgage Corporation: loan types and products

Commonwealth and New Fed Mortgage offer several loan options for home buyers looking to make a purchase or homeowners looking to refinance an existing mortgage. Borrowers are out of luck if they need additional niche options such as mortgaged real estate loans, lines of credit secured by real estate, or construction loans.

At the time of this review, the Commonwealth Mortgage website was very limited to information on products, rates and fees. A representative from the Commonwealth of Nations told us that this is the same company as New Fed Mortgage and was unable to provide more details on the products. But here’s what you’ll find on the New Fed mortgage list right now:

Commonwealth Mortgage, a division of New Fed Mortgage Corporation: transparency

The Commonwealth website is limited to a contact form only. IN Main site of the new Fed also not intuitive. It mainly provides contact information, a complete mortgage application form, and a portal for making a mortgage payment. It is not related to New Fed Mortgage Centerwhich contains more information about New Fed, but offers an awkward user interface. At the Credit Center, you will find detailed information on New Fed mortgages, a borrower checklist, a glossary of terms, home buying process guides, and mortgage calculators.

But you will still need to apply for a mortgage online or call the New Fed office and leave a message before you can discuss borrowing options. The loan officer will have to complete a tough lending operation before providing the mortgage rate quote and final cost worksheet.

This experience is a major departure from other lending institutions, many of which offer easy-to-navigate websites, streamlined communication and quotes using a fast online form and a soft loan request that will not damage your credit history (as opposed to hard credit attraction. which may have a temporary but negative impact on your credit rating).

Commonwealth Mortgage, a division of New Fed Mortgage Corporation: rates and fees

Commonwealth and New Fed Mortgage say they do not provide personalized mortgage rate quotes or information about closing costs until the borrower fills out a formal mortgage application and agrees to receive a loan. The lender also doesn’t advertise interest rates on any of their loans, so you won’t be able to compare prices until you’re ready to complete your mortgage application.

To qualify for a Commonwealth or New Fed mortgage, you will need a credit rating of at least 580 for an FHA loan or 620 for a regular loan. However, a higher score can help you get a lower mortgage rate.

If you decide to apply, ask about any closing costs you will pay and compare them to what you would pay with other lenders. Here are some of the typical fees that home buyers pay when applying for a mortgage:

  • Loan disbursement fee
  • Grade payment
  • Credit Report Fee
  • Title insurance fees
  • Entry Fee
  • Deposit deposit
  • Prepaid interest
  • Optional mortgage points
  • Late fees

New Fed does not charge prepayment penalties – that is, mortgage prepayment fees – on any of its loans. Borrowers can lock in the mortgage rate for free, but they may have to pay to extend the lock if the borrower causes closure delays.

Refinancing with Commonwealth Mortgage, a division of New Fed Mortgage Corporation

If you already have a mortgage, you can refinance a mortgage to better match your financial goals. The new Fed offers two refinancing options:

  • Refinancing rate and term, where you take a new loan and get a new loan term, interest rate, or both. Homeowners usually do this to lower their monthly mortgage payments by removing private mortgage insurance, or speed up the payment deadline.
  • Refinancing when cashing out, which allows you to get a mortgage in excess of your debt, pay off your current mortgage, and get the difference (minus closing costs). Then, over time, you will pay off the new, larger loan and you can use the cash for any expenses.

Commonwealth Mortgage, a division of the New Fed Mortgage Corporation versus mortgage lenders

Commonwealth of Nations and the new Fed mortgage Union house New American funding
Minimum credit rating 580 for FHA; 620 for regular 620 to match; 700 for jumbo 580
Minimum down payment From 0% to 3.5%, depending on the loan program 3% for ordinary; 5% for compliance; up to 20% for large loans From 0% to 5%, depending on the mortgage program
Where does the lender work? 15 states 37 states and Washington, DC Washington DC and all states except New York and Hawaii.
Main types of loans Regular, Large, VA, FHA, USDA, Renovation Loans, Adjustable and Fixed Rate, Refinancing, Cash Payable Refinancing, Construction Loans Regular, large, regulated, fixed, refinancing, refinancing with cash withdrawal Regular, Large, VA, FHA, USDA, Renovation Loans, Adjustable Rate, Fixed Rate, Refinancing, Refinancing Cash Payable, Reverse Mortgage, Home Equity Lines

How to shop around to get the best mortgage rate

Before you start shopping for your home, it is best to start with pre-approval of a mortgage… Pre-approval will help you determine your budget and support your purchase proposal. But you are not tied to this lender, so you can check others when you’re ready to apply for a home loan.

Surveying those around you can help you compare deals and potentially save thousands of dollars in interest and commissions over the life of the loan. Start by collecting rate quotes from multiple mortgage lenders… Then compare the interest rate and closing cost and use online mortgage calculator to help you figure out how much you will spend on interest on each option.

Take a look at one example: Suppose you received two quotes for a mortgage rate on a $ 200,000 home with a 20% down payment and 30 years maturity.

LEVEL OF INTEREST MONTHLY PERCENTAGE AND BASIC PAYMENT PRESERVATION OF INTEREST FOR OVER THE TERM OF THE LOAN
3.25% USD 696
3.1% USD 683 USD 4,680

At an interest rate of 3.25%, the monthly principal and interest payments are $ 696. But at an interest rate of 3.1%, you save $ 13 a month in interest expenses. It might not sound like a lot, but in total, you will save $ 4,680 over 30 years.

Bottom line

Commonwealth and New Fed Mortgage offers a wide variety of loans, but it is only available in 15 US states. We’ve been struggling with the user interface. You also won’t be able to get a quote for closing costs and your interest rate until you’re ready to apply for a mortgage, so it can be difficult to determine if a lender is available to you. If you live in a lender’s area of ​​responsibility and decide to apply, be sure to compare multiple lenders and request Loan valuation after application. Use your loan appraisal to compare your options and get the best deal.

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