Capital Bank Home Loans, located at 18949 Coastal Highway in Rehoboth Beach, is offering second home buyers in Delaware a new mortgage product that will save them thousands of dollars.
Since Fannie Mae and Freddie Mac announced significant increases in second home loan costs on January 5, buyers looking for a conforming loan amount of up to $647,200 to buy their new second home have seen the cost increase dramatically. Combined with the overall rate hike in the first quarter of 2022, this means second home loan rates are nearly double what they were for much of 2021. More than 60% of all state loans States are sold at Fannie Mae and Freddie. Mac, and nearly all second home loans except jumbo loans over $647,200, are sold there, so buyers don’t have many financing options.
Capital Bank has launched a new loan program to help fill that void for buyers buying in Delaware and Maryland. Although based in Rockville, Maryland, Capital Bank operates a mortgage branch in Rehoboth Beach, and its team members understand the local market.
Capital Bank is now offering second home buyers the same 30-year fixed rate for the purchase of a second home that they could obtain on a primary home loan.
“In my 19 years in the mortgage business, second home compliant rates were nearly identical to primary home rates until Fannie Mae and Freddie Mac announced their changes earlier this year. This surprise change has disrupted our local market much more than other parts of the country that are not in resort areas and do not have nearly the ratio of second home buyers that we have. I’m so excited that we now have a great solution for these buyers! Between the upfront cost savings and the lower rate we can offer compared to most lenders on second home compliant loans, buyers will easily save tens of thousands of dollars over the life of the loan on average loan amounts. which are now common in our area,” said Eric Parsons, branch manager of Capital Bank’s 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 adheres to the conforming lending guidelines. This product is exclusive to Capital Bank home loans and is only available by contacting the local Rehoboth Beach office. For more information, go to eric-parsons.com or contact Eric Parsons at 302-632-2515 or Loan Officer Shelley Foresman at 302-381-2257.