HSBC Preferred Mortgage benefits
Who can apply
- U.S. citizens
- Permanent and nonpermanent resident aliens
- Foreign nationals
- An International Credit Report (ICR) may be required for borrowers without 2 years U.S. residency or U.S. employment
- Borrowers may receive $750 Closing Cost credit, restrictions apply3
- Title vesting is permitted for U.S. Corporations and U.S. limited liability companies (LLC)8
- Borrowers who elect to have their monthly payment auto deducted from a U.S. HSBC checking account are eligible for an interest rate discount2
* Rate is subject to change based upon your banking relationship with HSBC. Rates shown are for New York only; for current rates available in other states, please call 866.427.2101.
1 HSBC Preferred Mortgage requires combined personal deposit and investment‡ balances of at least $10,000 U.S. Dollars or equivalent at any member of the HSBC Group (in the U.S. or home country). The minimum balance requirement must be fully funded before the closing of the mortgage loan. To learn more about the Preferred Mortgage requirements contact an HSBC branch or 844.HSBC.MTG (844.472.2684).
2 Rates, discounts and loan amounts depend on specific program and may require certain personal deposit and investment balances, reserves, equity and automatic payment from an HSBC U.S. checking account.
5 International borrowers must have qualifying documentation to be eligible for an HSBC Preferred Mortgage, HSBC Deluxe Mortgage and HSBC Elite Mortgage. Monthly mortgage payments must be made in U.S. funds.
6 Loan amount cannot exceed $1,500,000 and borrowers must have traditional credit in the U.S. to be eligible for mortgages above 80% loan-to-value. The minimum down payment assumes a FICO score of 720 and above, a one unit single family dwelling purchase and no cash out refinance transactions.
7 Private Mortgage Insurance is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Private Mortgage Insurance is generally required for a loan with an initial loan to value (LTV) percentage in excess of 80%.
9 Available on adjustable rate mortgage (ARM) loans only. When interest-only payments are made for a period of time, the principal balance of the loan does not decrease. When principal and interest payments commence, the monthly payment will increase substantially.
Deposit products are offered in the U.S. by HSBC Bank USA, N.A. Member FDIC.
Mortgage and home equity products are offered in the U.S. by HSBC Bank USA, N.A. and are only available for property located in the U.S. Subject to credit approval. Borrowers must meet program qualifications. Programs are subject to change. Geographic and other restrictions may apply. Discounts can be cancelled or are subject to change at any time and cannot be combined with any other offer or discount.
*Explanation of Terms
Annual Percentage Rate (APR) and Monthly Payment
The APR is the annual cost of the loan and includes fees (such as mortgage insurance, most closing costs, discount points and loan origination fees) indicating the total cost of the loan.
Assumptions: The APR and Monthly Payment calculation is based on a loan amount of $2,000,000 for the purchase of an owner occupied property, a down payment of 35%, closing costs of $2,373.75 plus points shown above, 15 days of prepaid interest and an interest rate with a 60-day lock period.
The APR and monthly payment shown for Adjustable Rate Mortgages (ARMs) may increase or decrease after the initial fixed rate period per the terms stated in your adjustable rate note.
5/1 ARM Jumbo Preferred: The total repayment term for this ARM loan is 30 years or 360 payments. For the first 60 months, the principal and interest payment will be $8044.23 with a corresponding simple interest rate of 2.636%. For the remaining 300 months, the principal and interest payment will vary based upon the margin added to the current index on scheduled adjustment dates (which may be subject to adjustment or lifetime interest rate caps). Therefore, the actual interest rate and monthly principal and interest payment may be higher or lower than shown here.
30yr Fixed Jumbo Preferred: The total repayment term for this fixed rate loan is 30 years or 360 payments. Monthly Payments will be $8949.97 with a corresponding simple interest rate of 3.472%