If you have an adjustable rate mortgage that you are looking to be released, the good news is that it is generally as simple as requiring refinancing. The bad news is that the interest rate could be much higher today, assuming that you have locked up a super low rate several years ago. This has … Read more
If there’s one thing I don’t recommend, it’s buying stocks on margin. Due to stock volatility and high interest rates, borrowing money to buy stocks is a bad idea. Conversely, I am not opposed to purchasing a home on margin, i.e. with a mortgage, if the purchase follows home buying guidelines such as the 30/30/3 … Read more
Well, it happened again. The Federal Reserve announced another rate cut and mortgage rates increased. In fact, the 30-year fixed term now starts with 7 instead of 6 for most loan scenarios. What is happening? Although it seems to defy logic, it is a fairly common phenomenon. This also happened in September. This should make … Read more
Although 2025 gives hope for a drop in mortgage rates, this is still very uncertain. There are renewed fears that inflation could pick up, pushing rates higher in the new year. Especially as we welcome a new president who has promised to introduce inflationary policies, such as across-the-board tariffs. This affects not only potential homebuyers … Read more
Lately, there has been a lot of speculation surrounding the direction of mortgage rates. I, too, have been very involved in this trying to figure out what the next step would be in terms of pricing. Despite the recent increase in the 30-year fixed rate from around 6% to 7%, I remain optimistic that a … Read more
Lately, I’ve heard a lot of people say that mortgage rates are “average” or “normal.” As in, they are neither high nor low. They’re just typical. This is usually in response to someone pointing out that they are much higher than they were just a few years ago. In some ways, this feels like a … Read more
If you’ve been home shopping since early 2022, when mortgage rates rose, you’ve probably encountered redemption. Buydown is used to reduce a buyer’s mortgage rate, either temporarily or permanently. This can make the mortgage payment cheaper for the first few years of the loan term, or for the entire 30 years. These buyouts serve as … Read more
Have you ever wondered why you pay interest on a loan or earn interest on your savings? It all depends on interest rates. Interest rates affect everything from mortgage and auto loans to the financial activities of businesses and governments. When you borrow money, you pay a fee to use it for a certain period … Read more
Everyone knows that high mortgage rates have been a total drag lately, especially for potential buyers facing sky-high asking prices. But what if I told you that almost half of those who recently purchased a home still have an interest rate below 5%? This seems quite unlikely, given that the 30-year fixed rate returned above … Read more
As you explore available loan options, you’ll likely come across two common interest types: fixed interest rate and discounted interest rate. These terms may seem technical, but understanding the difference between them can help you choose a loan that truly fits your needs and financial situation. At first glance, the two types of interest may … Read more