Category: News

A 3/1 adjustable-rate mortgage (ARM) offers homebuyers a fixed interest rate for the first three years of their loan, followed by annual rate adjustments for the remaining term. During the initial three-year period, your monthly payments remain consistent, giving you the predictability of a traditional fixed-rate mortgage. After those introductory years, however, the interest rate can adjust once per year based on market indexes—such as Treasury yields or the Secured Overnight Financing Rate—plus a set margin determined by the lender. Once the three-year fixed period ends, the annual rate adjustments are governed by caps that limit how much your interest rate can increase at each adjustment and over the life of the loan. For example, an initial adjustment cap might restrict your rate from rising more than 2 percentage points…

Homeowners sometimes assume that today’s higher mortgage rates have slammed the door on refinancing, yet the truth is more nuanced. While the era of sub-3 percent loans is well behind us, national lending data show 30-year fixed rates have mostly hovered in the high-6 to low-7 percent range since 2023, with the occasional dip. If you locked in a loan closer to 8 percent during that spike—or if you have goals that go beyond trimming the rate—refinancing can still deliver meaningful value. The key is to weigh costs against long-term gains and be ready to act quickly when mini-reprieves in pricing appear. One scenario where refinancing shines is when your personal finances have improved. Say you bought with minimal cash down and a mid-600 credit score at the tail end…

A piggyback loan—often called an 80/10/10 or combination mortgage—is a clever way to buy a home with less cash up front. Instead of a single mortgage plus private mortgage insurance (PMI), you take out two loans at closing: one for 80 percent of the home’s value and a second for 10 percent. You then cover the remaining 10 percent with your own down payment. This structure lets you sidestep PMI, which can add hundreds to your monthly payment, and keeps your main mortgage under the conforming loan limit so you avoid the stricter requirements of a jumbo loan. Beyond skipping PMI and jumbo-loan hurdles, piggyback loans let you stretch your cash reserves. In a standard 80/10/10 setup, you’re only putting 10 percent down instead of 20. Some lenders even offer…

When it comes to mortgage rates, you might wonder how much influence the Federal Reserve really has. While the Fed doesn't directly set mortgage rates, its decisions significantly impact the borrowing environment for homeowners. Recently, the Fed chose to maintain its benchmark interest rate at 4.25–4.5 percent, signaling stability after several changes throughout 2024. This decision encourages lenders to keep mortgage rates relatively steady, which can offer some comfort to potential homebuyers. Mortgage rates mainly track the yield on the 10-year Treasury bond rather than the Fed's rate directly. When the Fed keeps rates unchanged, it can reassure bond markets, often leading to slightly lower Treasury yields and, consequently, more affordable mortgages. For instance, after the Fed’s recent announcement, the bond market responded positively, lowering the 10-year Treasury yield. This…

Inheriting a home with an outstanding mortgage can be a springboard to new opportunities rather than a source of anxiety. By gathering the loan statements, confirming the servicer’s details, and keeping payments current, you safeguard the property while the estate is settled and gain precious time to weigh your best options. Reviewing the loan’s balance, interest rate, and payment schedule—ideally alongside an estate-planning attorney—equips you with clarity and confidence, ensuring the process stays smooth and compliant with state-specific rules. Armed with the numbers, heirs can choose a path that turns the property into an asset. Thanks to federal protections, relatives who wish to live in—or rent out—the home can assume the loan without triggering a costly due-on-sale clause. If several heirs are involved, one party can finance a buy-out (via…

The first 100 days under the new 2025 administration have made one thing very clear: major shifts are happening that could impact homebuyers, homeowners, and the entire real estate market. Here’s what you need to know right now: ✅ Home Affordability Is at a Breaking Point High home prices, stubbornly high interest rates, and limited inventory are making it harder than ever for buyers to afford a home. New proposals aim to boost affordable housing — but change will take time to reach the market. ✅ Mortgage Rates Are Uncertain Rates remain higher than in recent years, and while the Fed is signaling possible rate cuts later in 2025, nothing is guaranteed. Mortgage costs could remain volatile — making timing and preparation critical for buyers and refinancers. ✅ Raw Material…

Many people assume that once you retire, your chance to qualify for a mortgage disappears—but that’s not the case. Thanks to fair lending laws, age cannot legally be used against you when applying for a home loan. Whether you're downsizing, helping a family member, or relocating for lifestyle or tax reasons, it's absolutely possible to get approved for a mortgage later in life. What matters most is your financial profile—your income, credit, debt-to-income ratio, and assets. Understanding the Challenges Older Borrowers May Face While lenders cannot reject your application based on age, retirees may face some practical hurdles. Often, fixed incomes or distributions from retirement accounts can make it harder to meet traditional income requirements. Additionally, existing mortgage debt or high monthly obligations can increase your debt-to-income ratio, which lenders…

📉💸 The Real Cost of Homeownership: It's Not Just About the Interest Rate 💸📈 Every day, I hear people ask: ➡️ "What's the current mortgage rate?" ➡️ "Can I get a better deal than my friend?" ➡️ "How much can I save if rates drop 0.5%?" But almost no one asks the most important question: 🧠 "How much will it actually cost me to own my home?" Here’s the truth 👉 Focusing only on interest rates is like looking at the gas price and ignoring how far the trip is. Yes, the rate matters. Yes, saving monthly feels good. But those are snapshot decisions—they don’t tell the whole story. 📊 True cost of homeownership includes: • Loan term • Total interest paid over time • Refinancing costs • Property taxes…

If you’re a homeowner, chances are you’re sitting on a good chunk of equity. And while that feels reassuring, here’s the truth: equity isn’t cash until you access it. With political and financial instability—from entitlement cut talk to inflation and interest rate hikes—now is the time to be proactive, not reactive. Why You Should Act Now: 1. Rising costs are squeezing fixed-income homeowners. 2. Credit tightening may make it harder to qualify for loans soon. 3. Declining home values could reduce your equity cushion. Options to Consider: 1. HELOC (Home Equity Line of Credit): Flexible access to funds without committing to a lump-sum loan. 2. Cash-Out Refinance: Tap into equity for debt payoff, renovations, or emergency reserves. 3. Reverse Mortgage (62+): Create monthly income or access a lump sum without…

With the rising cost of living, particularly due to high tariffs on goods like construction materials (steel, aluminum, etc.), homeowners, whether they have recently bought a home or have been homeowners for a long time with significant equity, should take proactive steps to mitigate the impact on their finances. Here are some strategies that can help: For New Homeowners: 1. Budget for Inflation: Since tariffs raise the price of materials, services, and even home improvements, it’s important to budget for higher costs across the board. This includes everything from groceries to utility bills, repairs, and property taxes. Prepare for a higher-than-usual cost of living by keeping track of inflation trends. 2. Refinance Your Mortgage: If you’ve recently purchased a home and are facing high interest rates or the threat of…