Does New Sell Their Loans?

A direct mortgage lender, New American Funding is a popular option for home buyers. They provide a selection of mortgage loan alternatives, including purchase, refinance, and first-time home buyer loans. But as a future applicant, you’re probably wondering – does New sell their loans?

So, does New sell their loans? New American Funding is a direct lender, and so they do sell some of their loans. However, they do work to keep as many of their loans as possible in their own portfolio. This allows them to offer more competitive interest rates and also to provide more personal service to their borrowers.

Your mortgage loan is personal property, but it can be sold. A loan that has been sold indicates that the lender has given up the right to service the loan, which means collecting the monthly interest and principal payments.

The address where the mortgage payments will be received is the only change to the loan’s terms. New American Funding can sell your loan for a variety of reasons.

Who Is New American Funding?

New American Funding is a direct lender that originates, funds, and services their loans. This allows them to offer competitive rates and terms to borrowers.

Additionally, it allows them to provide a high level of customer service, as they can control the entire loan process from start to finish.

Why Would New Sell My Mortgage Loan?

Most lenders sell loans on the market, and it’s common practice. If it happens that you get informed that your loan has a new servicer, there is no need to be stressed.

Federal banking laws and regulations allow lenders to trade loans, and they do it mostly because they need some of the capital back.

Since mortgages take a lot of time to be repaid, New might be in need of funds to be able to continue giving out new loans, so they may sell yours to get those funds immediately.

However, for a borrower, nothing major will change, as the terms of the mortgage remain the same. The only thing that changes is the address and the name of the financial institution you’re making payments to.

New Offers an Abundance of Home Financing Options

If you are interested in getting a typical home mortgage loan from New American Funding or perhaps mortgage land, you can explore their different types and mortgage options:

30-Year Fixed Rate Mortgage – this type of mortgage includes steady monthly payments over a 30-year term.

Conventional Loan – these loans have down payments that go as low as 3%. They also have fewer restrictions than any other type of loan.
I CAN Mortgage – this type of mortgage gives you an opportunity to customize the loan terms and agree on the length, which spans from 8 to 30 years.
VA Loan has no required down payment. These loans include special terms, which are available to active military personnel and veterans.

15-Year Fixed Rate Mortgage – if you are interested in paying off your home mortgage faster than usual, this loan is the right choice.
Reverse Mortgage is a loan designed for homeowners that are 62 or older. With it, they can use their home equity to take a loan and reach their financial goals.
USDA Loan also has no required down payment and has flexible requirements when it comes to credit scores.

FHA – if you are interested in mortgages that have lower down payments, this is one of the options. FHA allows a 3.5% down payment.
Buydown Loan is a great way to reduce the payment rate of your mortgage.
ARM is a great solution if you are looking for lower interest rates and lower monthly payments during the initial period.

Jumbo Loan is for people who are looking for large sums of money to reach their dream goals. This loan allows you to buy the home you really desire, no matter the price.

The Most Popular Choices With New

Finding the ideal property is only half of the equation of purchasing a home because selecting the ideal mortgage is a crucial step. The stakes are high because a wise financial decision could end up saving you big bucks over the course of the loan. Before you decide, you should select a mortgage that best fits your needs and budget because you will likely be paying it over a lengthy amount of time. Let’s examine the types of loans offered by New American Funding.

30-Year Fixed Rate Mortgages

Your interest rate won’t fluctuate if you take a 30-year fixed-rate mortgage. As a result, budgeting is made simpler because the monthly payments are fixed for 30 years, independent of the property market. This choice is favored by many homeowners due to the long-term stability it offers.

15-Year Fixed Rate Mortgages

A 15-Year Fixed Rate Mortgage is a popular choice since it can help borrowers develop equity more rapidly and offers a lower interest rate. However, it must be completed in half the time of the more common alternative that spans over 30 years. Additionally, since they won’t have to make payments in retirement, it may be advantageous for people looking to retire in less than 30 years.

Conventional Loans Are Also a Popular Option

Conventional loans have fewer limitations and permit lenders to create terms unique to a client because they are not either guaranteed or insured by the government. Smaller down payments, as little as 3% of the entire cost, are required for these types of loans. In addition, processing them can happen more quickly than with government-backed loans.

There are different term lengths available, and they can be anywhere from 10 to 30 years. If the client puts down less than 20% on the property, private mortgage insurance (PMI) may be required by the lender because conventional loans carry a higher risk for them.

The Difference Between FHA and VA Loans

As for government-backed loans, you have a choice between VA and FHA loans. The table below shows the differences between the two.

	FHA	VA
Credit Score	580 or higher	620 or higher
Down Payment	3.5%	0%
Interest Rate	Usually less positive	Usually more positive
Loan Limits	Yes	No
Funding Fee	No	2.3% to 3.6% of the total loan value
Mortgage Insurance Premium	Yes, upfront and with an annual fee	No

Also, keep in mind that veterans who have received their entire VA loan entitlement are no longer subject to VA loan limits.

Consider New American Funding for Your Mortgage

Although your loan may get sold along the way, you should consider New American Funding. They are a direct lender that offers a variety of mortgage products, including FHA, VA, and conventional loans.

They have a strong commitment to customer service and offer a wide range of resources to help borrowers through the loan process.

New American Funding is a great choice for borrowers who are looking for a reliable and trustworthy lender. You can contact them and get additional information, such as whether mortgage points are closing costs and also do you have a deed if you have a mortgage.