The Better Way to Purchase a Home: Cobalt’s Low Down Payment Mortgage

When you’re getting ready to buy a house, particularly for the first time, it can be challenging to navigate the countless fees, interest rates, and loan options. Fortunately, you’ve got a friend in the business. Read on to learn how, or visit the convenient Cobalt CU online mortgage center for more information.

A buyer-friendly mortgage product
Cobalt offers a mortgage product that aids homebuyers, with an affordable program that offers attractive terms:

  • A 3% down payment
  • No prepayment penalty
  • Terms up to 30 years
  • No lender closing costs
  • In-house servicing

Anyone who’s ever looked into buying a home is likely to see that those terms are very appealing, especially for first-time homebuyers who don’t have home equity for a down payment. Instead, with this low down payment mortgage, just 3% is required for purchase, giving homebuyers more available funds for other costs related to buying a house. The down payment is even lower than the traditional FHA loan.

Other perks
Also compelling, the loan doesn’t require an upfront private mortgage insurance (PMI) fee, according to Alan Stoltenberg, Vice President of Mortgage Lending at Cobalt CU.

Usually, homebuyers will be asked to get this type of mortgage insurance if they have a down payment of less than 20% of the appraised value or sale price of a home, and upfront fees can involve out-of-pocket funds that may stretch a homebuying budget to the limit. By eliminating the upfront fee, Cobalt CU gives homebuyers more flexibility. Plus there are long-term financial benefits, because the monthly PMI premium is competitively priced.

Stoltenberg adds that Cobalt CU also offers a no-lender-closing-cost program, saving even more money for homebuyers. Lender closing costs include a wide variety of charges related to property appraisal, underwriting, title insurance, and other fees. Some lenders charge up to 5% of the loan amount in closing costs, potentially adding thousands of dollars to a loan closing.

Cobalt CU online mortgage center
You can learn more about the 3% mortgage product at Cobalt CU’s online mortgage center, which also offers a wealth of mortgage information in a user-friendly format.

You can even input borrower information and get pre-approval through an online application that takes only about 15 minutes. Stoltenberg says, “The online center will offer products based on borrower qualification and can connect you with a mortgage professional for more help if needed.”

Homebuying can seem difficult to navigate, especially if you’re taking that big step of first-time buying. But with innovative options like the 3% mortgage product, Cobalt CU is committed to helping you sail into your new home with ease.

What’s most important to you when looking for a home loan? Share your thoughts in the comments.