homeownership: Mortgage Rates Jump Above 3%, Creating Pressure for Home Buyers - 10/03/21 10:43 AM
As expected, mortgage rates have risen after the Federal Reserve signaled that it plans to begin reducing the support it’s been providing to the U.S. economy.
Home buyers could be caught flat-footed if they don't begin to factor rising interest rates into their budgets. 'At today’s rate, the monthly mortgage payment on a median-priced home for-sale is roughly $150 higher than it was a year ago, with $25 of the increase owed to higher rates and $125 owed to higher home prices,' said said Danielle Hale, chief economist for Realtor.com.
Mortgage rates rose above 3% for the first time since the beginning of … (1 comments)

homeownership: FHA Extends Mortgage Forbearance Options - Here's What to Know if You're Struggling to Pay - 10/02/21 10:27 PM
How new legislation, CARES Act will affect mortgages on your home during COVID-19 pandemic.
Borrowers struggling to make their FHA mortgage payments now have more time to file for forbearance.
According to the U.S. Department of Housing and Urban Development, you can now file for forbearance – essentially a temporary pause of mortgage payments – on FHA loans from now until the end of the COVID-19 National Emergency. Previously, the option (well, at least filing for it) was set to expire Sept. 30.
"Our top priority is to help as many individuals and families as possible to recover from the COVID-19 pandemic and keep their homes," said Lopa Kolluri, principal deputy … (1 comments)

homeownership: Average Mortgage Amount Increases to $410,000 - 10/02/21 10:59 AM
The dollar value of mortgages home buyers are taking out is soaring as they try to afford higher home prices.
The average amount for a mortgage averaged $410,000 last week, according to data from the Mortgage Bankers Association. That marks the highest average mortgage amount since May.
“With home price appreciation continuing to run hot, increasing more than 19% annually in July, applications for larger loan amounts continue to outpace lower-balance loans,” says Joel Kan, the MBA’s associate vice president of economic and industry forecasting.
While home prices continue to rise, they are inching up by smaller annual gains than they have been. The … (0 comments)

homeownership: How do You Pay Back a Reverse Mortgage? - 09/30/21 10:39 PM
A reverse mortgage can make it possible for seniors to remain in their home and supplement their retirement income. While you receive a steady influx of cash with a reverse mortgage, it’s ultimately a loan that needs to be repaid. How do you pay back a reverse mortgage, and when is it necessary? Here’s what you need to know.
How does a reverse mortgage work?
 
A reverse mortgage allows seniors to borrow against their home equity. Home equity conversion mortgages (HECMs), the most common type of reverse mortgage, are available to homeowners 62 and older. With a reverse mortgage, instead of the borrower making monthly … (0 comments)

homeownership: Should You Refinance Your Mortgage Now? Factors to Consider - 09/29/21 02:40 PM
The process may seem intimidating but doing your homework can pay off.
This step-by-step guide will give you smart tips on how to get the best deal when refinancing. 
Maybe you’re like thousands of homeowners who can’t resist those rock-bottom mortgage rates. And you’ve become enamored with the idea of shortening your term or lowering your monthly payments — potentially saving tens of thousands of dollars over time — by refinancing your loan.
Yet enduring all the research, paperwork and scrutiny may seem daunting and overwhelming. You’re not alone.
Experts say many homeowners want to refinance but talk themselves out of it because they don’t … (1 comments)

homeownership: Should You Refinance Your Mortgage Now? Factors to Consider - 09/28/21 10:08 PM
How to determine if making move is beneficial to your financial goals.
There are numerous factors to consider before deciding whether you should refinance your mortgage. 
The Federal Reserve announced last week that it plans in the next few months to hike interest rates and ease up on buying bonds, measures it put in place to prop up the economy during the pandemic. That could mean that the days of historically low mortgage rates — below 3 percent on the popular 30-year fixed loan — are numbered.
So, does that mean you should rush out and refinance your mortgage by the end of the year?
First, let’s … (1 comments)

homeownership: 3 Drawbacks of Paying Off Your Mortgage Early - 09/26/21 12:15 PM
 
Before you push yourself to pay off your home loan ahead of schedule, consider the downside of going this route.
 When you get a mortgage, you agree to repay your loan over a certain period of time. That could be 15, 20, or 30 years -- or a different term that your mortgage lender agrees to. But you may, at some point, decide that you want to pay off your home loan early. Doing so could save you a lot of money on interest. Despite that benefit, here are a few reasons you may not want to pay off your home ahead of schedule.
 1. … (0 comments)

homeownership: What Americans Will Sacrifice to Buy a Home - 09/24/21 12:32 PM
 
Most Americans want to own a home at some point in their life, and they say they’re willing to make sacrifices to achieve it. For some, that means forgoing alcohol or vacations for a year to save. But others say they’re willing to give up having kids in order to have their dream home. About 60% of recent survey respondents say they’d prefer their dream home over 40% who said they’d prefer kids first, according to a new survey from Cinch Home Services, a home warranty firm.
The youngest adults in the housing market—Gen Z—feel the strongest about one day becoming a … (0 comments)

homeownership: How the Federal Reserve Affects Mortgage Rates - 09/23/21 10:23 PM
Just to dispatch with the technicalities, the Federal Reserve does not set mortgage rates, and the central bank’s decisions don’t drive mortgage rates as directly as they do other products, like savings accounts and CD rates.
But the Fed’s actions do indirectly influence the rates consumers pay on their fixed-rate home loans when they refinance or take out a new mortgage. The Fed at its September meeting indicated it plans to keep rates low at least until 2022, despite a brightening economic picture and a jump in inflation in recent months.
“The Fed is inching closer to tapering, the process of slowly – very slowly – … (2 comments)

homeownership: What to Expect During the Mortgage Process? - 09/22/21 11:59 AM
 
This start-to-finish overview walks you through every step of getting a home loan.
Buying a home is a huge financial commitment that’s both exhilarating and stressful, especially for first-time buyers. But if you’ve done your homework and know what to expect, you’ll be ready to close your deal with confidence.
The process can vary from one scenario to the next, but you can expect to go through certain basic steps when you apply for a mortgage. Depending on your unique situation, these steps may happen concurrently, or take longer than expected. (We’re giving you some time estimates, but keep in mind that, for … (1 comments)

homeownership: More Fuel for Mortgage Refinance Boom: Home Equity Reaches Record High - 09/12/21 08:22 PM
 
Americans’ home equity reached another record high in the second quarter, according to a new report by mortgage data firm Black Knight. That metric, along with still-low mortgage rates, sets the stage for a continued boom in mortgage refinancing.
Black Knight says “tappable home equity” — the equity homeowners could borrow against while maintaining a loan-to-value ratio of less than 80 percent — jumped to a record $9.15 trillion at the end of June.
“U.S. homeowners with mortgages gained another $1 trillion in tappable equity in the second quarter alone,” says Ben Graboske, Black Knight’s president of data and analytics. “This is by far the strongest growth … (1 comments)

homeownership: 4 Common Objections to Mortgage Refinancing - and How to Overcome Them - 09/04/21 03:02 PM
Mortgage rates continue to flirt with record lows, a sustained dip that means the window for refinancing your home loan remains wide open.
Rates declined again this week, when the average rate on 30-year mortgages fell to 3.03 percent from 3.04 percent last week. Rates hover just above their all-time low of 2.93 percent, according to Bankrate’s weekly survey of large lenders.
And yet millions of American homeowners have declined to lock in the super-low rates made available by the coronavirus pandemic. A recent Bankrate survey found three-quarters of U.S. homeowners had not yet refinanced their mortgages.
When Bankrate asked why homeowners hadn’t refinanced, respondents pointed to a … (1 comments)

homeownership: 3 Must vs. Lust Buying Tips to Avoid Overspending - 09/03/21 08:55 AM
 
The super-simple (and fun) way to separate needs from nice-to-haves. 
When you embark on the home-buying process, your heart is filled with all the dreams in the world. It’s really easy to get caught up in the “I have to have ___________, so I’ll cut back somewhere else” game, even when you don’t actually know where that somewhere else is or if you can realistically cut back there.
This post will show you how to pare down the excess and make sure to get the things you really NEED.
Make a List of Wants
Start by making a list of everything you want in your house. If … (1 comments)

homeownership: Understanding Credit Scores - 08/30/21 07:30 PM
 
Credit scores may seem simple on the surface: your credit score is a number that represents how good your credit is, and the higher the better.
But what type of credit score are you looking at, and how is the score calculated? Why does your score keep changing, and why is the score you see in your banking app not the same as the one your lender sees?
Credit scores can be confusing and complex, so read on to learn how credit scores work, the different types of credit scores and where you can find your credit scores.
How Do Credit Scores Work?
A credit … (0 comments)

homeownership: Starter Homes Still Cheaper Than Renting in Many Areas - 08/29/21 03:00 PM
Aspiring first-time home buyers may not want to give up on that competitive house hunt: In many markets, they could save money by owning.
Buying a starter home is more affordable than renting in nearly half of the largest U.S. metros, according to a new study released by realtor.com®.
The U.S. median rental price has climbed nearly 10% year over year to $1,607. That is 15.5% higher than the monthly payments for a starter home, the lower-priced tier of homes for sale in a market. Low mortgage rates are helping to offset recent jumps in home prices.
“Rents hit new highs in 40 of … (0 comments)

homeownership: The Secret Bias Hidden in Mortgage-Approval Algorithms - 08/28/21 01:46 PM
 
The new four-bedroom house in Charlotte, N.C., was Crystal Marie and Eskias McDaniels’s personal American dream, the reason they had moved to this Southern town from pricey Los Angeles a few years ago. A lush, long lawn, 2,700 square feet of living space, a neighborhood pool and playground for their son, Nazret. All for $375,000.
Prequalifying for the mortgage was a breeze. They said they had saved much more than they would need for the down payment, had very good credit—scores of 805 and 725—and earned roughly six figures each, she in marketing at a utility company and Eskias representing a pharmaceutical … (1 comments)

homeownership: It Ain't Over 'Til the 'Funding Lady' Sings - 08/21/21 09:09 PM
 
If you think your new mortgage loan is official once you’ve signed your closing papers, you might want to rethink that. Sure, you’re pretty darn close to a brand-new loan, but you’re not completely there. When your loan is officially approved by the lender and closing documents are ordered, there were several stages your application went through before papers could be ordered.
When your loan officer contacts you and lets you know your loan has been approved, it’s very possible there are still some outstanding conditions attached to your approval. Your loan could be conditionally approved. This simply means there are some … (3 comments)

homeownership: How to Pay Off Your Mortgage Faster - 08/18/21 09:37 PM
 
Extra payments or refinancing can simplify paying off your mortgage faster.
If you have a 30-year mortgage, you may feel as though you'll always be paying off your house. But you can slash the time it takes to pay off your mortgage using a number of strategies, many of which don't require spending a lot of extra money.
When it comes to paying off your mortgage faster, try a combination of the following tactics:
Make biweekly payments. Budget for an extra payment each year. Send extra money for the principal each month. Recast your mortgage. Refinance your mortgage. Select a flexible-term mortgage. Consider … (1 comments)

homeownership: 6 Things You Can Do to Prepare for a Home Appraisal - 08/16/21 05:50 PM
 
Getting your home appraised is a necessary step in putting it on the market and the appraisal will influence your asking price. This means you want your home in its best possible condition, so it will be appraised at the highest potential value. While undertaking massive renovations may not be an effective process, there are smaller things you can do to raise the market value of your home.
Start Small with a Little Spackle
If you've lived in your home for any length of time, you've probably hung things on the walls, put up shelves, or simply had accidents that resulted in minor … (2 comments)

homeownership: Biden's Latest Mortgage Assistance Can Cut Your Monthly Payment By Up To 25% - 08/15/21 11:08 AM
 
Biden's latest mortgage assistance can cut your monthly payment by up to 25%.
While most U.S. homeowners have come through the pandemic unscathed, or even further ahead thanks to money-saving refinances at cheap mortgage rates, millions of others have had to opt for forbearance to put their loan payments on hold. A federal foreclosure ban provided them further protection.
Now, those safeguards are falling away.
Though more than 1.74 million mortgages were still in forbearance as of Aug. 10, according to mortgage data and technology provider Black Knight, the foreclosure moratorium expired on July 31, after multiple extensions.
Some homeowners may find themselves unable to resume their … (0 comments)