Category: Mortgage Information
How Appreciation and Amortization Benefit Homeowners
Owning a home is not only a place to live but also a valuable asset that can contribute to long-term wealth accumulation. Two key factors that play a vital role in increasing a homeowner’s wealth are appreciation and amortization. Understanding how these factors work can provide homeowners with insights into building substantial financial equity over... Read More
Getting Comfortable with the New Normal Mortgage Rates
The biggest shock to homebuyers is the soaring mortgage rates of 2022 that doubled in one year resulting in approximately 15 million mortgage ready buyers displaced from the market due to affordability issues. As of February 23, 2023, the 30-year fixed rate mortgage was at 6.5%. While that is twice as high as it was on... Read More
Negotiate a Buydown to Get Into a Home Now
If you are a prospective homebuyer, things have changed in the past year. Most notably, mortgage rates have more than doubled which has created an affordability gap that has taken approximately 15 million buyers out of the market. Inventories are growing but it isn’t because more people are deciding to sell their homes; it is because... Read More
Are Prices and Rates Going to Continue to Rise?
One of the most talked about questions in the real estate market has to do with “Will prices continue to rise now that interest rates have increased dramatically this year?” It is understandable to think that if the Federal Reserve is using interest rate increases to slow consumer demand, that it would also slow homebuyer... Read More
Assumptions Make Sense Again
Existing FHA and VA mortgages are assumable at the note rate to owner-occupied buyers who qualify. This can be an alternative to paying higher, current rates and benefit buyers with lower closing costs while saving money on the payment. For the last 20 years, rates have been steadily coming down and there was no reason... Read More
Some Should Consider an ARM
Adjustable-rate mortgages are not the right choice for many homeowners especially, if they plan to own the home for a long time. Less than 3% of buyers choose an adjustable-rate mortgage according to NAR’s 2021 Profile of Home Buyers and Sellers. With fixed-rate mortgages hovering in the mid 4.00% range, it’s understandable that people select... Read More
Paying Down Your Mortgage
When the situation arises that you have a lump sum of cash to pay down your existing mortgage, there may be different options available. Pre-paying principal on a fixed-rate mortgage shortens the term of the mortgage but the payment stays the same. Conversely, recasting a mortgage with a lump-sum principal payment lowers the principal and interest... Read More
Cash-Out Refinance
With the rapid appreciation that homes have had in the last two years, most homeowners have equity. A common way to release part of the equity is to cash-out refinance but some homeowners may not be eligible currently. This type of loan replaces the current mortgage by paying it off and an additional amount of... Read More
Mortgage Forbearance
Some homeowners who could not afford to make their mortgage payments this past year have been relieved to find out that their mortgage servicer or lender allowed them to pause or possibly, reduce their payments for a limited period. While it does relieve the financial pressure, it is a temporary remedy. About 2/3 of the... Read More
Mortgage Closing Scams
The American bank robber, Willie Sutton, was asked why he robbed banks and his answer was “because that is where the money is.” During his 40-year career, he stole about $2 million but Internet scammers are stealing many times that amount in phishing schemes preying on unsuspecting home buyers. These crooks know where the... Read More