Customized Home Lending Solutions to Fit Your Financial Goals

In today’s economic environment, characterized by inflation, fluctuating interest rates, and rising borrowing costs, homebuyers are increasingly looking for efficient financing options. Whether you’re planning to build your dream home or purchase a second property, having the right lending solutions can significantly impact your financial strategy.

At Commerce Trust, we understand that integrating a home purchase or construction project into your broader wealth management plan is crucial. Our tailored lending solutions are designed to meet the specific needs of our clients, considering both their current financial situation and future goals.

Strategic Borrowing for Homeownership

When it comes to purchasing, building, or refinancing a home, strategic borrowing can play an essential role. Our private banking relationship managers work closely with financial planning and asset management specialists to create personalized lending strategies that leverage assets, such as investment portfolios or trusts, to optimize financing options.

If you’re interested in learning more about how Commerce Trust can help with your home financing needs, don’t hesitate to reach out.

Multi-Collateral Loans: A Smart Financing Option

For those looking to buy luxury real estate or an expensive home, the down payment can often present a significant cash flow challenge. Rather than liquidating assets like stocks or other investments, which could affect your long-term financial strategy, a multi-collateral loan offers a more flexible solution.

With this type of loan, you can pledge eligible assets from your investment portfolio or trust, rather than selling them. This way, you can keep your investments intact and avoid triggering an unplanned taxable event while still securing the funds needed to purchase your new home. If you have sufficient cash to cover the down payment, a multi-collateral loan also gives you the option to use that cash for home improvements or other personal expenses.

Construction Loans for Your Custom Home

Building a custom home offers homeowners the unique opportunity to design their living space to their exact specifications. A construction loan is an ideal way to finance such a project. Typically, these loans are issued once building plans are finalized and are based on a percentage of the expected value of the completed home.

After the construction phase is finished, the construction loan is paid off, and a standard long-term mortgage is put in place. At Commerce Trust, our private banking relationship managers serve as a single point of contact throughout the process, coordinating between builders, subcontractors, and title companies. We help lock in the final loan interest rate before construction begins and offer proactive communication and personal service throughout the life of the loan, ensuring smooth project execution and financing management.

Loan Modifications for Greater Flexibility

With higher interest rates affecting many homeowners, some may find it necessary to reassess their cash flow needs. Loan modifications can offer a flexible solution, allowing borrowers to adjust their interest rates without the need for extensive paperwork. For example, if you have an adjustable-rate mortgage (ARM) with Commerce Bank, your interest rate can be reduced if market rates decrease, potentially saving you money.

Unlike traditional refinancing, modifying your loan does not require an appraisal, title work, or asset verification, making the process faster and more efficient. Modifications can be made multiple times, with each adjustment resetting the fixed rate period. This can be particularly useful for homeowners who want to preserve liquidity while benefiting from lower rates.

Though there are some risks, particularly when interest rates are on the rise, loan modifications can offer significant cash flow advantages for homeowners who want to manage their expenses more effectively and allocate funds to other financial priorities.

Conclusion

Whether you’re purchasing a new home, building a custom residence, or refinancing an existing property, having the right lending strategy is essential for maximizing your financial potential. At Commerce Trust, our team of private banking experts works alongside you to find the best solutions tailored to your needs, ensuring your home financing is aligned with your long-term goals.