Capital Bank loan can save thousands for second-home buyers
Capital Bank Home Loans, located at 18949 Coastal Highway in Rehoboth Beach, offers second-home buyers in Delaware a new mortgage product that will save them thousands of dollars.
Since Fannie Mae and Freddie Mac announced significant cost increases to second-home loans Jan. 5, buyers seeking conforming loan amounts up to $647,200 to purchase their new second home have seen the cost rise dramatically. Combined with the overall rise in rates in the first quarter of 2022, this means rates on second-home loans are nearly double what they were for much of 2021. Over 60% of all loans in the United States are sold to Fannie Mae and Freddie Mac, and almost all second-home loans with the exception of jumbo loans greater than $647,200 are sold there, so buyers don’t have many financing options.
Capital Bank has launched a new loan program to help fill this void for buyers purchasing in Delaware and Maryland. While headquartered in Rockville, Md., Capital Bank operates a mortgage branch in Rehoboth Beach, and its team members understand the local marketplace.
Capital Bank now offers second-home buyers the same 30-year fixed rate to purchase a second home that they would be able to obtain on a primary home loan.
“For the 19 years that I’ve been in the mortgage industry, conforming second-home rates were nearly identical to primary home rates until Fannie Mae and Freddie Mac announced their changes earlier this year. This surprise change disrupted our local marketplace much more than other parts of the country that are not in resort areas and don’t have nearly the ratio of second-home buyers that we do. I’m so excited that we now have a great solution for these buyers! Between the upfront cost savings and lower rate that we can offer compared to most lenders on conforming second-home loans, buyers will easily save tens of thousands of dollars over the loan term on the average loan amounts that are now common in our area,” said Eric Parsons, branch manager for the Capital Bank Rehoboth Beach office.
What makes this new program even more attractive is that Capital Bank caps the loan amount at $1 million instead of the conforming loan limit of $647,200, but still underwrites to conforming loan guidelines. This product is proprietary to Capital Bank home loans and only available by contacting the local Rehoboth Beach office. To learn more, go to eric-parsons.com or contact Eric Parsons at 302-632-2515 or Loan Officer Shelley Foresman at 302-381-2257.
