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Sebonic Financial, a division of Cardinal Financial, is a Charlotte, NC-based mortgage lender and offers loans in all 50 states and DC
With a fully digital lending platform, borrowers can go from receiving a quote to completing a mortgage fully online, with phone advice from loan officers along the way. Using Sebonic’s proprietary platform, Octane, borrowers can drag and drop their loan documents, sign documents electronically, and get real-time status updates at every stage.
There are a few drawbacks to borrowing with Sebonic, however: you won’t be able to check quotes online or get in-person help during the home buying process if needed. Here’s what you need to know about the lender before you apply.
Advantages and disadvantages of the Sebonic financial mortgage
Offers a streamlined digital process
Finance conventional loans, jumbo loans and the three government-backed loan programs
Available in all 50 states and Washington, DC
Jumbo interest-only ARMs available
Mortgage rates are not published online
Does not offer home equity loans, HELOC loans, home improvement loans, reverse mortgages or construction loans
No in-person branches
Sebonic financial mortgage: loan types and products
Sebonic Financial offers conventional and government guaranteed mortgages and gives borrowers the choice of fixed rate and variable rate (ARM) mortgages. Here’s what Sebonic Financial Mortgage is offering right now:
With a fixed rate mortgage, the interest rate never changes. An ARM only offers a fixed rate for a certain period of time. Then, depending on market conditions, the rate may go up or down over the life of the loan. Sebonic offers ARM terms of 3/1, 5/1, 7/1 and 10/1. With a 3/1, for example, the rate is fixed for three years and then changes once a year for the remaining term.
Sebonic also offers jumbo loans, which are home loans that exceed a certain amount called a compliant loan limit. For 2021, that limit is $ 548,250 in most areas of the United States. Sebonic Financial will finance jumbo loans up to $ 3 million – and may offer an interest-only ARM option.
Sebonic does not offer a Home Equity Line of Credit, Home Equity Loan, Home Improvement Loan, Reverse Mortgage, or Construction Loan.
Sebonic financial mortgage transparency
Sebonic Financial website is aesthetically appealing, but it offers very few details about the borrowing process. You will find a payment portal, a handful of mortgage calculators, and information on what mortgage loans you can get with this lender. But the website doesn’t include information on current mortgage interest rates, lender fees, the general home buying process, and tips on how to choose a home loan.
After completing an online quote form, someone from Sebonic will call or email you for assistance. You’ll answer a few qualifying questions, but you won’t need to do a credit check before getting the quote. The Closing Costs Worksheet which contains all associated fees, however, will not be provided until you have completed the pre-approval process. This process is different from many of Sebonic’s competitors, which offer more tools for borrowers and quick personalized rate quotes online.
Sebonic financial mortgage: rates and fees
Sebonic Financial does not publish mortgage rate quotes and does not list any information on the costs of taking out a mortgage loan. According to a Sebonic loan officer, the lender typically offers rates around 0.5% lower than their competitors because their fully digital lending platform cuts overhead. Plus, borrowers never pay prepayment penalties and can lock in a rate for free. However, a foreclosure extension fee may apply if the borrower delays closing.
The loan officer also said borrowers would pay origination fees ranging from $ 999 to $ 1,499.
Borrowers are also responsible for third party closing fees, which may include:
The minimum credit score required by Sebonic Financial varies depending on the type of loan. You will need a credit score of at least 620 to qualify for a conventional loan and a score of 550 or higher for an FHA loan. Having a higher credit score can help you qualify for the best mortgage rates. From start to finish, borrowers typically complete a purchase within 30 days and a loan refinance within 30 to 60 days.
Refinancing with the Sebonic financial mortgage
If you own a home with an existing mortgage, you can refinance your home loan to better suit your financial goals. Sebonic offers two refinancing options:
- Rate and term refinancing, where you take out a new mortgage and get a new loan term, a new interest rate, or both. Interest rate and term refinancing can help you save money on your monthly mortgage payments and speed up your repayment schedule, which can save you money.
- Refinancing of collection, which allows you to borrow money using your home as collateral. You’ll take out a new mortgage for more than you owe, pay off the current mortgage, and pocket the difference (less closing costs).
The Sebonic Financial Mortgage vs. Other Mortgage Lenders
|Sebonic financial mortgage||Churchill mortgage||Rocket mortgage|
|Minimum credit score||620 for conventional; 550 for the FHA||620||620 for conventional; 580 for the FHA|
|Minimum deposit||5% for conventional; 3.5% for FHA; 0% for VA and USDA||0% to 5%, depending on the loan program||0% to 3.5%, depending on the loan program|
|Where does the lender operate?||All 50 states and Washington, DC||All 50 states and Washington, DC||All 50 states and Washington, DC|
|Main types of loans||Conventional, jumbo, VA, FHA, USDA, variable rate, fixed rate, refinancing, cash-out refinancing||Conventional, Jumbo, VA, FHA, USDA, Various Home Improvement Loans, Variable Rate, Fixed Rate, Refinance, Refinance With Withdrawal, Reverse Mortgages, Home Equity Loans, Home Equity Lines of Credit||Conventional, jumbo, VA, FHA, fixed rate, refinancing, cash-out refinancing|
How To Shop For The Best Mortgage Rate
Mortgage rates can change daily and even on an hourly basis, and each lender has their own way of setting rates for clients. So shopping around and getting multiple quotes is the best way to find a good deal. This step is important because even a small difference in your interest rate can save you hundreds or thousands of dollars over the life of the loan.
Start by researching mortgage lenders, submitting mortgage applications, and requesting a loan estimate. According to a Freddie Mac investigation, borrowers save an average of $ 3,000 over the life of the loan when they collect at least five quotes. You could also save even more by negotiating. To do this, send the best offer to another lender and ask them to offer you a better interest rate or closing costs, or both. He may be prepared to compete for your business, especially if you have good credit.
Sebonic Financial is available in all states and Washington, DC, and offers all major mortgage programs. Its fully digital process can be convenient and can even save you money on your interest rate. But because Sebonic doesn’t openly advertise its fees and rates, it’s important that you find these details first. Then compare them to what other lenders are offering.