Mortgage experts Josh and David discuss with Lynne some new products designed to help homebuyers lock in their rates while they are shopping for a new mortgage.

 

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0:00:06.7 Lynne Jarman-Johnson (LJJ): Money, I’m Home, welcome in. I’m Lynne Jarman-Johnson with Consumers Credit Union. From Finance to Fitness, we have it all. And I’m telling you, here’s what we do at Consumers, we stop for a moment, we look at what’s going on in the world and we say, “Let’s help our members and our communities.” Let’s talk inflation busters. Josh Summerfield and David Pendley are in our mortgage department, our mortgage team, and they’re always thinking of cool new ways that people can get into their home, and this is really exciting. David, inflation busters, what’s this all about?

0:00:41.1 David: Yeah, it’s interesting, in February of 2022, we topped $30 trillion on our national debt, we’ve pumped in about $6 trillion to $7 trillion in the last year, 18 months. It was bound to create inflation, which it has, and the government’s way of staving off the inflation is to reduce the money supply, so they’ve stopped buying mortgage-backed securities. It’s caused interest rates to go up, and so we’ve gone from low to middle threes to the low to middle fives in a very short amount of time. And Josh and I, one thing we do is we have separate meetings with our salespeople, and we always say, “What do you need, what does the market want, what are we trying to achieve?” And we came up with really at least three amazing products that will help our members tremendously in this increasing rate environment.

0:01:35.3 LJJ: Hey Josh, the three are actually so cool, and they’re new for our members and for those who are looking to get a house, you don’t have to be a member of Consumers to nab your home, you can reach out to one of our mortgage loan officers, we can really get you going. Tell us a little bit about some of the products, Josh.

0:01:50.8 Josh: Yeah, we’re really excited to roll these products and, you know, touched up a few of our others as well, but these three specific products, Lock & Shop, which allows our borrowers, our members to go out and have the security of knowing the rate is locked in while they’re shopping for a home, so they don’t even have something under contract yet, they’re still out there looking and fighting and scrapping with all the other buyers out there, but they’re protected. They know the rate is not going up. It really sets us apart from the rest of the market there. Another great product that we rolled out is long-term lock, so those buyers that are maybe getting a new-build home, and there’s one of the builders that are building it and they’re going to close on it at the end of the build time, which may be eight, nine, 10 months, we’re actually going to do a long-term lock and protect their rate during that construction period to allow them the security to know what their payment is going to be at the end of the build. So, we’re going to do that for up to 12 months while their new home is getting built.

0:02:48.3 David: And then the last one is another exciting product that kind of is a flash back in time with interest rates, but our 7-Year ARM is a much more aggressive rate than you’re seeing with the 30-year fixed and some of the other things in the market right now, so… But it is locked in for seven years, it’s not going to change, so you know what your payment is going to be for those seven years before the adjustable part of it kicks in, and those rates are still down starting with the three in private. So that’s exciting.

0:03:16.9 LJJ: Wow. David, one of the things that on the Lock & Shop that I think is very exciting is the fact that if you grab your rate… Well, what happens if the rate goes down?

0:03:26.8 David: If it goes down… So, let’s just say you do and you got a 90-day chance to find your house and the rates drop for some unforeseen reason, guess what? You win on that too, and so you get a low of the two. When you actually find your house, then you can actually lock in and say, “Okay, I was protected on the upside and I win on the downside.”

0:03:47.2 LJJ: Well, it’s called inflation busters, and what this really means to you if you’re listening is a custom-made mortgage. We can help you with any type of mortgage that you want. Yes, we have your mortgages that are right just for you. Josh and David, thank you so much for joining us today, we really love it when you stop by and tell us about any new products, but also that whole customer service intimacy, which is really what we’re known for.

0:04:12.0 Josh: Thanks, Lynne.

0:04:12.8 LJJ: Thank you, Josh.

0:04:13.5 David: Thank you Lynne, always a pleasure.

0:04:15.3 LJJ: Everyone, have a great week. I’m Lynne Jarman-Johnson with Consumers Credit Union. Hey, thank you Jake Esselink for your production skills. Everybody listen, if you have a topic you’d like to share, just send them our way, we’d love to hear about community interests that you are interested in, and share them with our members and with all of our listeners. Thank you so. Money, I’m Home, with Consumers Credit Union.

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