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Guild Mortgage Helps Homebuyers Save on Mortgage Payments Through New Payment Advantage Program
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Rhea-AI Sentiment
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Rhea-AI Summary
Guild Mortgage (NYSE: GHLD) has launched a new loan program, Payment Advantage, designed to assist homebuyers in managing rising mortgage interest rates. Under this program, Guild will cover 1% of the interest rate for the first year, subsequently allowing borrowers predictable payment increases. Available until March 31, 2023, the offer accommodates first-time and repeat buyers with minimal down payments and credit scores starting at 620. Additionally, refinancing options are available without lender fees through December 2025, aiming to provide financial relief amid escalating mortgage costs.
Positive
Launch of Payment Advantage program, covering 1% of interest rates for the first year.
Refinancing options available without lender fees until December 2025.
Targeting both first-time and repeat buyers with low down payments (as low as 3%).
Potential for improved customer acquisition in competitive housing market.
Negative
Average 30-year mortgage rate increased to 6.90%, more than double 2021 rates.
National median mortgage payment rose to $2,012, a 45.5% increase in 10 months.
Independent Mortgage Lender Will Pay1% of Interest Rate for First Year of Mortgage; Offers Refinancing Without Lender Fees
SAN DIEGO--(BUSINESS WIRE)--
Guild Mortgage (NYSE: GHLD), a growth-oriented mortgage lending company originating and servicing residential loans since 1960, introduced Payment Advantage, a new conventional loan program to help homebuyers save on their payments as rates continue to rise.
Guild’s Payment Advantageprogram allows homebuyers to lock in a conventional mortgage and Guild will pay 1% of the borrower’s interest rate for one year with a lender paid temporary buydown. After the first year, the borrower will have a predictable payment increase and may be eligible to refinance with Guild through programs such as the Payment Protection program which has no lender fees.
Conventional financing options, available for first-time and repeat buyers, include primary purchase transactions with as little as 3% down and credit scores as low as 620. The program is available for locks until March 31, 2023.
Mary Ann McGarry, Guild CEO, said new programs are needed because of the current trends in interest rates. The Mortgage Bankers Association (MBA) reported that the national median mortgage payment reached $2,012 in October, up $629 in the first 10 months of the year, a 45.5% increase.
“Freddie Mac reported that the average commitment interest rate for a 30-year, conventional, fixed-rate mortgage was 6.90% in October, more than double the rate of 2.96% across all of 2021,” said McGarry. “With the rising costs of loans in today’s increasingly competitive housing market, we want to continue to find creative ways to help prospective buyers achieve homeownership and start building family wealth. Introducing Guild’s Payment Advantage will help our clients save on their loan payments now, as well as offer the ability to refinance without lender fees through December 2025 with our Payment Protection program.”
Guild offers four Homebuyer Protection programs to give homebuyers the confidence they need to know their purchase is protected. Credit Approval Protection (CAP) is designed to stand behind our credit approvals to protect our borrower’s earnest money, Homebuyer Express (HBE) is Guild’s 17-day closing guarantee, Lock and Shop allows buyers to lock in their rates while they shop for a home, and Guild’s Payment Protection Program provides a rate and term refinance with no lender fees.
With Payment Protection, Guild allows for a rate and term refinance with no lender fees to qualified applicants. A rate and term refinance allows a borrower to replace their current home loan with a new one, changing their mortgage term or interest rate to help them pay less for their loan over time, pay off their loan faster, or lower their monthly payments. The borrower must close their purchase loan on or before July 31, 2023 with a non-bond, FHA, VA, USDA or conventional confirming or high balance loan to be eligible for the program. Additionally, the refinance must be a first lien rate and term refinance for the same property and must be paying off a loan originally financed by Guild Mortgage and must close by December 31, 2025.
Headquartered in San Diego, Guild Mortgage is a leading national lender with an established history of offering a comprehensive array of loan products and partnering with government organizations to help deliver the promise of home in every neighborhood and community. Its loan professionals can serve the needs of any homebuyer, from helping first-time buyers achieve homeownership, often through government loan programs, to homebuyers looking for a jumbo loan. Guild also helps active duty and retired military personnel who qualify for VA loans with 100% financing and flexible qualifying standards. The company is consistently recognized for its impact in the communities it serves, commitment to customer service, strength in regulatory compliance, and workplace culture.
About Guild Mortgage
Founded in 1960 when the modern U.S. mortgage industry was just forming, Guild Mortgage Company is a nationally recognized independent mortgage lender providing residential mortgage products and local in-house origination and servicing. Guild’s collaborative culture and commitment to diversity and inclusion enable it to deliver a personalized experience for each customer. With more than 4,000 employees and over 250 retail branches, Guild has relationships with credit unions, community banks, and other financial institutions and services loans in 49 states and the District of Columbia. Guild’s highly trained loan professionals are experienced in government-sponsored programs such as FHA, VA, USDA, down payment assistance programs and other specialized loan programs. Guild Mortgage Company is a wholly owned subsidiary of Guild Holdings Company, whose shares of Class A common stock trade on the New York Stock Exchange under the symbol GHLD.
What is the Payment Advantage program by Guild Mortgage (GHLD)?
The Payment Advantage program allows homebuyers to receive a 1% reduction in their interest rate for the first year to help manage rising mortgage costs.
Until when is the Payment Advantage program available?
The Payment Advantage program is available for locks until March 31, 2023.
What refinancing options does Guild Mortgage offer?
Guild Mortgage offers refinancing without lender fees through December 2025 under its Payment Protection program.
What are the minimum requirements for the Payment Advantage program?
The program is available for homebuyers with as little as 3% down and credit scores starting at 620.
How has the mortgage market changed recently according to Guild Mortgage's press release?
The average commitment interest rate for a 30-year mortgage has more than doubled compared to 2021, and the national median mortgage payment has significantly increased.
