Cross Mortgage - Mortgage Services

RESIDENTIAL LOANS

Residential loans make up a large percentage of our business. Cross Mortgage offers its customers many types of residential loans including fixed rate and adjustable rate mortgages. We have access to programs for all borrowers, including those with "tough" credit situations. We also have access to many other programs such as those for the first time home buyer as well as home equity lines of credit.

COMMERCIAL LOANS

Commercial loans are significantly different in structure than residential loans. Where residential lenders offer 100% financing and other incentives, commercial loans are conscientious in the way of credit quality of the borrower and the loan to value of the subject property. Cross Mortgage has the capacity to help your clients obtain commercial loans for a wide range of purposes since we have access to “hard money” commercial lenders.

EQUIPMENT LEASING

For many business owners, refinancing their existing building to buy equipment for the business can be a very costly mistake. Sometimes the most effective solution for a business owner who needs equipment is to do equipment leasing. Cross Mortgage can help businesses access capital for their businesses by selecting a credible equipment leasing partner.

1031 EXCHANGES

A “1031 Exchange” is an Internal Revenue Code which allows the owner of a commercial property to make an exchange for another of the same type of property which becomes free from taxation. Cross Mortgage will help your clients in this capacity. We work with “1031 Exchange” intermediaries to help your client through this technical process. 

NEW RESIDENTIAL MORTGAGE PRODUCTS

New mortgage products come to market but not on a regular basis. As of late, all the “talk” seems to be centered around “Interest-Only Opinions”, 103% financing, 40-year mortgages and Reverse Mortgages.

40-Year Notes

For a given amount, a 40-year mortgage carries lower monthly payments than a 30-year home loan. That means a 40-year mortgage allows you to afford a slightly more expensive house or allow you to save more money into your retirement portfolio. The longer loan term, however, has disadvantages: You pay more interest and build equity slower. We will help you determine whether this is a good option for your specific situation.

103% Financing

If you are looking to buy a house with absolutely zero out-of-pocket cash, consider a 103 percent loan. 103 percent mortgage financing allows the loan amount to exceed the purchase price by three percent in order to cover closing costs. This loan program is perfect for those who do not have substantial savings for a down payment and who need help with closing costs. Under this loan program, up to 3% of closing costs can be financed for a total loan to value (LTV) ratio of 103%.

We offer 103% mortgages in both fixed and adjustable rates. If you want to have a lower initial rate, an ARM might be a good alternative. To qualify for a 103% mortgage, you have to have good credit. If you have a lot of recent late payments on other bills, you may not be eligible. You also have to qualify. The lender will make sure that your income is sufficient to cover the loan amount requested.

Interest-Only Option

Referring to above, an “Interest-Only Option” is exactly what it says: interest payments are all that is required for a certain period of time, which is usually ten (10) years. At that time, the mortgage has to be converted to a different type of mortgage at the prevailing interest rate at that time. In order to determine the payment of an “Interest-Only Option”, you simply have to take the principle amount of the loan and then multiply that by the interest rate. Now you take this number and divide it by the number 12 and now you have your monthly-required interest payment. “Interest-Only Option” mortgages can certainly be effective in some situations but also can be financially dangerous in others.

Reverse Mortgages

Reverse mortgages are becoming a very important financial tool for very many senior citizens. A reverse mortgage essentially allows a person over the age of 62 to borrow money from the equity which has built up in their home and the home owner not have to pay back the loan until the death of the last remaining spouse or sale of such property. For many seniors, a reverse mortgage is the only way to obtain money which is much needed in their time of life to maintain a quality standard of living.

In essence, the difference between a Home Equity Loan and a Reverse Mortgage is the former has to be paid back on a monthly basis.