Your home has a major impact on your life. After the past year, you may be considering a remodel of your existing space, buying a new home, or tackling a major renovation. Navigating this life-changing decision can feel overwhelming. To minimize stress, and even expenses, it helps to have experts to guide you through the mortgage process.

If you’re looking to ‘refresh’ your home’s financial situation, you’re not alone. Ray Harvey, First Fed’s VP regional mortgage manager, says the recent pandemic has led many people to rethink and make changes to their living situations.

First Fed offers several different mortgage options, along with a team of experts ready to help, whether you are buying, selling, or maybe just fixing up your property.

First Month Savings on a New Home

For those seeking new homes, First Fed is offering a “First Month on Us” credit through September 30, 2021. This credit covers closing costs of your new home equal to your first month’s principal and interest on your new mortgage, up to $5,000.

It’s no secret cash offers have become increasingly widespread. For traditional home buyers attempting to compete in this environment, it is imperative that they have a strong financing approval from a lender that knows what is necessary to get their offer to stand out.

Harvey says that despite the challenges of navigating a housing market where demand far outweighs supply, near record-low interest rates still make new home purchases an attractive decision.

Invest in Your Current Home

With the fierce competition in the current market many people are choosing to stay where they are and invest in what they already have. First Fed has options for this as well.

“We have a lot of opportunities for people to capitalize on the value of their current property,” Harvey says.

First Fed offers two main methods to tap into the current equity of your home.

The first is a cash-out refinance loan, which provides low interest rates and an ability to take out money for things like larger home upgrades or debt consolidation. The second is known as a Home Equity Line of Credit, or HELOC. This is an adjustable line of credit that’s attached to the home as a second lien. Funds can be pulled from that line of credit as needed or wanted, ideal for smaller home improvements, medical bills, college tuition, among others.

Make Your Home Feel New Again

Finally, First Fed also offers flexible and convenient Renovation Loan Programs. These programs allow buyers to purchase that “fixer-upper” and fix it too. As well, existing homeowners can easily finance improvements by leveraging the equity based upon the value after improvements are made. This program can be used on owner-occupied or second homes and available for purchases or refinances.

“Renovation loans have proven to be a great solution for homeowners looking to stay where they are but seeking substantial upgrades and improvements to their home,” says Michele Anderson, a mortgage loan expert at First Fed.

Which Option is Right for You?

To figure out which mortgage option is best for you, it’s best to reach out to an experienced mortgage loan officer, like Don Collings of First Fed. Whether speaking in-person or by phone, a loan officer can take in all your info and help you weigh the pros and cons of each option. 

“Every home loan comes with a unique set of circumstances,” Collings says. “That's why it’s important for us to be able to talk with our clients and walk them through what all of their options are. It’s really rewarding to help them take those final steps towards their dream home.”

Because mortgage financing can become quite complicated, Harvey adds that speaking with an expert is the best way to get a lay of the land.

“A lot of times, it’s not initially obvious which option is the best,” Harvey says. “But we can help you compare the different possibilities and come up with the best solution for your particular situation.”

In general, however, Harvey says that if you already have significant equity in your home, the biggest determining factor on whether to take a cash-out, a HELOC, or renovation loan will likely be your short and long-term homeownership objectives and then determining which rates and terms will meet your goals.

“If you already refinanced at the lowest possible rate, it’s probably going to be more advantageous for you to do a home equity line of credit,” Anderson adds. “But if rates are lower than your current mortgage rate, you may get an overall lower cost by doing a cash-out refinance to fund your projects.”

Ready for the Next Step?

Applying for mortgage options at First Fed is very straight-forward, says Harvey, buoyed by a new online application process that streamlines the process. Links to applications can either be provided directly from a lender or found on their website.

If you still have questions, First Fed mortgage experts like Harvey, Anderson, and Collings are happy to assist.

“Helping people turn their homeownership plans into reality is incredibly rewarding,” says Anderson. “At First Fed our goal is not just to help you into your dream home, but to maintain financial well-being in the process.”

First Fed is a member of FDIC and an Equal Housing Lender.