Mortgage Rates

6% is Old News. What is Today’s Mortgage Rate?

Since mortgage rates change frequently, sometimes, multiple times a day, it's difficult to figure out - "What is today's mortgage rate?" On Thursday, media - big and small, online and offline, old and new had one common mortgage news - "Mortgage Rates rise above 6% for the first time since 2008." But that was old news The media is always behind on "What is today's mortgage rate" news: The media usually picks up the news from Freddie Mac's Primary Mortgage Market Survey (PMMS) every Thursday when the weekly survey results are published (see…continue reading →

High-Balance and 2nd Home Loans to Become More Expensive

Both Fannie Mae are Freddie Mac, the two agencies that purchase conforming loans, are going to charge additional fees thus making 2nd (vacation) homes and high-balance loans more expensive. What is a 2nd home and High-Balance Loans? Sometimes my borrowers confuse 2nd home as the home they buy after they have purchased their first home. That's not the case.  A 2nd home is defined as a vacation home; a home that's not rented out and is also not your primary residence. High-balance loans are loans with loan amounts higher than the basic conforming…continue reading →

Mortgage Rates Rise more than 0.5%; at the Highest Levels in 2 Years Now

Fed's announcement last week sent the mortgage rates soaring to the highest levels in 2 years. Fed now sees itself hiking rates and reducing bond purchases faster than what the market anticipated earlier pushing the treasury yields and taking the mortgage rates along with it. According to Freddie Mac's latest Primary Mortgage Market Survey, 30 Year Fixed mortgage rates now average 3.55% with 0.7% of the loan amount as fees/points.  See the screenshot below: As a reference point, on the November 10th Primary Mortgage Market Survey, Freddie Mac Reported 30 Year Fixed average…continue reading →

How Mortgage Interest Works

Knowing how mortgage interest works is pretty important when you buy a house. Your mortgage rate is one of the main things that determine how much you’ll be paying every month towards the home.    So how exactly does it work? Let’s take a look.    How Mortgage Interest Works - The Basics As you probably already know, very few people pay with cash when buying a home. A mortgage just makes sense because it lets you borrow money at relatively low-interest rates.    The interest rate is there so the bank can…continue reading →

Sink or Swim, Locking vs. Floating Your Mortgage Rate

Does locking your mortgage rate make sense? Or should you have a floating rate so you can take advantage of a rate drop?   Here are a few things to keep in mind as you weigh your options. But first, let’s talk about what these terms mean.    Locking Your Mortgage Rate vs. a Floating Rate When you apply for a mortgage, the lender will ask you early on if you want to lock in your rate. They’re essentially saying you can finalize the interest rate you’re willing to pay. From that point…continue reading →

Are Mortgage Rates Still Low?

The last two years have been crazy in the real estate market. Low mortgage interest rates made it a fantastic time to buy a house. The question is - are mortgage rates still low?   Let’s look at the past, the present, and what is expected to happen over the next few months. That’s the best way to understand where we are right now.    Mortgage Rate History Since we just got out of November, let’s use that as our benchmark. According to FreddieMac here are the average rates we’ve seen over the…continue reading →

Rate Shopping, Good or Bad?

Understanding rate shopping can save you tens of thousands of dollars. Yes, you read that correctly! That’s why so many home buyers take the extra time to shop around before deciding on a lender to work with.  We’ll use this article to help you understand the rate shopping world and why it’s worth your time and energy.  Rate Shopping Basics Let’s start by talking about the basics. What is rate shopping?  The short answer is it’s the process of talking to multiple lenders to get the best rate possible.You know that even a…continue reading →

What are 3 Important Factors that Affect Mortgage Rates?

Mortgage rates can’t seem to sit still. The pandemic required throwing fiscal stimulus into overdrive, and the Federal Reserve has been pulling out all the stops to keep the economy in balance as best as it can. Mortgage interest rates are at record lows, and as a result, home buying has been on fire lately. At the same time, many homeowners are refinancing their homes to take advantage of lower rates while they can.   Of course, this is creating a hot real estate market as prices continue to rise across the country,…continue reading →

How to Save on Your Mortgage With These Easy Tips

When shopping for your home, you always look for the best price for the best house you can afford. That means visiting multiple properties, comparing neighborhood sales, and making sure that the home fits yours needs as much as your budget. You wouldn’t make a decision on a house without trying to save as much money on the purchase price as possible. The same goes for your mortgage.   Before taking out a mortgage to purchase your home, you should go through the same due diligence that you do when shopping for the…continue reading →

Fixed Rate vs Adjustable Rate Mortgage (ARM)

Whether you are buying a new home or planning to refinance, you may be asking the question - Adjustable Rate Mortgage (ARM) or Fixed mortgage rate - which one is better? When you are trying to make a decision on whether to take an Adjustable Rate Mortgage or a Fixed Rate, you should consider two factors: How long do you plan to stay in the property? What is the difference in the interest rate between an ARM & a Fixed? Let me elaborate this: Rates on ARMs are usually lower than fixed-rate loans.…continue reading →