Incorporated in London in 1856 as the The Hongkong and Shanghai Banking Corporation, HSBC is now one of the world’s largest financial institutions. Although they have a dominant position in Asia, they operate on six different continents. Their portfolio includes a range of mortgage and refinance products in the United States with extremely attractive interest rates and terms offered through their HSBC Bank USA and HSBC Finance Corporation subsidiaries. Their US operations started with their 1980 acquisition of Marine Midland Bank. Marine Midland Bank was originally incorporated in 1850 in Buffalo, New York as the Marine Trust Company.
Thanks to HSBC’s conservative lending approach, they can offer qualified borrowers some of the most attractive terms and best mortgage and refinance rates in the market. Their traditional lending products are for “conforming” loans, which means that they can be for no more than $417,000 dollars. Within their conforming program, HSBC has fixed rate terms of anywhere from 10 years to 30 years. They also offer the option to take out a loan on an interest-only basis, leading to lower payments.
HSBC also offers adjustable-rate mortgages (ARMs). These loans come with a fixed interest rate for three, five, seven or 10 years then have yearly adjustments where the rate can go up or down to conform to changes in the interest rate market.
Mortgages from HSBC have two key benefits. The first is that their rates are extremely attractive even without requiring you to pay discount points. This leads to lower closing costs. They also have a 60 day lock period which lets you fix your interest rate and have ample time to close it. Other lenders frequently only give you a 30 or 45 day interest rate lock and charge extra for a 60-day lock.
Special Loan Rates
HSBC also has very competitive rates on special loans which make it easier for people who do not have a great deal of money for a down payment. Their VA loan product, available to veterans and active-duty service people, has no down payment required and carries no monthly mortgage insurance premiums. People without military service can take advantage of HSBC’s ability to originate FHA mortgages and FHA refinances. FHA loans allow you to put as little as three percent down to buy a home. HSBC will even work with borrowers who are able to find grant money to help them buy their home through their CommunityWorks program. HSBC CommunityWorks even offers a 40-year mortgage option.
HSBC’s special loan programs frequently carry slightly lower interest rates than traditional mortgages. While the discount can be small, frequently in the range of 0.375 percent (37.5 basis points), it nevertheless makes these loans more affordable. This can be especially helpful if you are struggling to meet your mortgage payment.
Home Equity Rates
HSBC offers their “Home Equity Line of Choice” HELOC product in 39 of the 48 contiguous states. Their lines offer a repayment period of up to 20 years with the option to have a fixed rate on some or all of the amount borrowed. They also allow borrowers to tap into up to 80 percent of their home’s equity. This product lets homeowners borrow money against their home’s equity at very attractive interest rates. The interest on HSBC home equity loans is frequently tax deductible, making them an even better deal than taking out car loans or credit card borrowing.
Premier Customer Mortgages and Refinance Loans
HSBC customers who have large amounts of money on deposit may qualify for the bank’s Premier lending programs. At a minimum, being a HSBC premier customer can qualify you for lower mortgage rates and refinance rates on both fixed and adjustable loans. Their Premier Deluxe Mortgage program includes a credit against closing costs and the ability to borrow up to $5,000,000 at fixed or adjustable rates.
Premier customers get additional benefits. They get the ability to borrow up to 85 percent of their home’s value through a Premier HELOC as well as receiving lower rates. They can also use HSBC’s global reach to simplify the process of getting an HSBC mortgage on property located outside of the United States, making it easier to buy a chateau in Burgundy or a beachfront cottage in Costa Rica.
HSBC is one of the world’s strongest and oldest financial institutions thanks to their prudent lending policies. If you can qualify to use them for your home equity line of credit, refinance loan or new purchase mortgage, you will benefit from their competitive terms and attractive rates. Should you be able to achieve Premier status, HSBC will be an even better option for finding the best mortgage and refinance rates.
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