Mortgage

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Fewer People Are Taking Out Mortgages as Interest Rates Increase

Americans are taking out fewer mortgage loans as interest rates increase, a reflection of buyer uncertainty amid rising inflation, higher interest rates and concerns about economic slowdowns. And even as mortgage rates hover near highs not seen in 20 years, mortgage amounts have yet to fall back to pre-pandemic levels. Experian examined mortgage rate data […]

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Mortgage Delinquency Rates Record Low – Is This the Calm Before the Debt Storm?

The U.S. housing market partied hard in 2021 and early 2022, as record-low mortgage rates and pandemic-induced demand set off vicious bidding wars and sent home prices soaring.  The fun didn’t last. The Federal Reserve began raising interest rates in March 2022, turning off the easy-money spigot that fueled the boom. By the fall, homebuyer

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What Is a Mortgage Buydown?

As you’re looking for opportunities to save money during this period of soaring mortgage interest rates, a mortgage buydown is one solution that can lower your monthly payment. A mortgage buydown is when you pay more money upfront in exchange for a lower interest rate on your loan. Let’s go over how a mortgage buydown

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New FHFA Credit Scoring Model Could Help More Homebuyers Qualify for a Mortgage

A decision that’s been eight years in the making, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac have approved the use of the FICO 10 T and VantageScore® 4.0 credit scores. After a multiyear transition period, lenders will be required to deliver these scores to Fannie Mae and Freddie Mac

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What’s the Best Way to Use Home Equity When Rates Are High?

Millions of American homeowners have enjoyed a spike in their home values over the past year, with home prices skyrocketing 13.5% from August 2021 to August 2022, according to a CoreLogic Home Price Insights report. One major side effect of this value increase was that those with mortgages saw their home equity increase greatly. By

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Home Equity Meaning – How Much of Your House Do You Own?

A cute little house with a white picket fence is a lot more romantic than the portion of the American Dream it represents: home equity. But there are a few things you need to understand about how it works, especially if you plan to borrow against it. The post Home Equity Meaning – How Much

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What Is a Qualified Mortgage?

What Is a Qualified Mortgage?

A qualified mortgage is a home loan that meets federal guidelines aimed at preventing lenders from issuing loans that borrowers can’t afford to repay. These guidelines were created in the wake of the 2008 financial crisis and are designed to be less risky for borrowers and lenders alike. Qualified Mortgage Requirements The Consumer Financial Protection

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7 Reasons Not to Refinance Your Home

Refinancing your home can provide a lot of benefits, but it’s not always the best decision. Whether you’re looking to refinance your mortgage to secure a lower interest rate, cash out some of your equity or switch from a variable rate to a fixed one, here are some situations where it might not make sense.

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Pros and Cons of Buying a Home

There can be great satisfaction in making a house your own, but financing a home brings major obligations, so before you take the leap, make sure you’re doing it for all the right reasons and that the time is right for your circumstances. Here are some thoughts to consider when deciding when it makes sense

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What Is a “Cash-In” Refinance?

A “cash-in” refinance allows a homeowner to replace their existing mortgage while making a lump-sum payment that enables them to get more favorable borrowing terms on the new loan. This type of refinance can be a viable option if you’ve recently received a cash windfall (via an inheritance, tax return, lottery winnings, etc.) and want

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Should You Put Down 20% on a Home? Consider the Pros and Cons

It’s not required to make a 20% down payment when buying a house, but there can be some financial benefits if you do. At the same time, putting down that much money could also come with some potential drawbacks. As a result, it’s important to think carefully about your situation and your objectives to make

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Do Adjustable-Rate Mortgages Have Rate Caps?

Adjustable-rate mortgage (ARM) loans can be an attractive alternative to a fixed-rate mortgage because they offer lower introductory interest rates. But after the initial fixed period, the rate becomes variable, adjusting along with market rates. Fortunately, ARMs include a few different rate caps, which can limit how much your interest rate can rise. Knowing what

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Should You Tap Into Your Home Equity?

U.S. home values surged from 2021 to 2022 and delivered hefty boosts in home equity to millions of homeowners. Home prices have since flattened and even begun to decline in some markets, but the total value of all U.S consumers’ home equity is at an all-time high, according to the U.S. Federal Reserve Bank of

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How to Use a HELOC to Pay Off Your Mortgage

You can use a home equity line of credit (HELOC) to consolidate high-interest credit cards, fund a home renovation, or for just about any purpose. You can even use a HELOC to pay off your mortgage. But depending on the terms of your primary mortgage and the new HELOC, it might not always be a

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What Is a Mill Rate and How Will It Affect My Home Costs?

What Is a Mill Rate and How Will It Affect My Home Costs?

As a homeowner, one of your most significant expenses is property taxes. A primary factor that helps determine your property tax bill is something called “mill rate” or “millage.” Mill rate is the amount of every dollar of a property’s assessed value that’s taxed. Generally, property taxes are included in your mortgage payment. When municipalities

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What Is a Good HELOC Interest Rate?

What Is a Good HELOC Interest Rate?

A home equity line of credit (HELOC) allows homeowners to tap the equity in their home in the form of a revolving credit line, similar to a credit card. What’s considered a good HELOC interest rate can vary depending on the current economic conditions. In November 2022, for instance, some lenders are offering rates in

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What Is the Due Diligence Period in Real Estate?

What Is the Due Diligence Period in Real Estate?

Due diligence in real estate is the period of time between an accepted offer and closing. It is during this time that the buyer and seller agree to allow the buyer to inspect the property before closing the sale. In other words, it ensures you, the buyer, are getting what you’re paying for, and that

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8 Adjustable-Rate Mortgage Terms to Know

8 Adjustable-Rate Mortgage Terms to Know

An adjustable-rate mortgage (ARM) is a unique type of home loan. While a fixed-rate mortgage keeps the same interest rate for the life of the loan, an ARM’s interest rate periodically fluctuates. It might be a good option for some homebuyers, but its complexity can be a lot to digest. That’s why we put together

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