If Stairway to Heaven is the most overplayed song, then the 30-year fixed mortgage has got to be the most overplayed loan option. And like the iconic tune, the 30-year fixed is really great. I mean for most borrowers, it's the clear way to go. No rate changes, 360 equal payments and if you don't refinance, sell the house or kick the bucket first, the loan is fully paid off 30 years down the road. But even if the 30-year fixed is a great and popular option, is it the best option for everyone? We're seeing that more and more … (2 comments)
Qualifying. It's always harder than it looks, right? I've talked before about my erstwhile career as an Ironman triathlete and for those familiar with that sport, they'll confirm that qualifying for the race in Kona is way harder than they make it look on TV. I suppose it's the same with getting into certain colleges, but since I struggled to get out of high school, I'm going to let someone else blog about that...
No, today, we're going to talk about qualifying for a mortgage and specifically we're going to cover the payment that we lenders use … (1 comments)
When we hear talk of the Federal Open Market Committee (FOMC) adjusting interest rates, there is one index in the mortgage environment that we know will be impacted, even when 30-year fixed rate loans may not see any change to their pricing. This rate is known as Prime Rate and it is the index that is used for most home equity lines of credit, or HELOCs.
If you have a HELOC on your property then it very likely will use Prime to set its base rate, with the addition or subtraction of a margin. Prime Rate itself currently … (1 comments)
In my life, I've originated a good number of 30-year fixed rate loans. And to this day, "a 30" remains the most popular of all loans. I would contend that it holds, and will continue to hold, this position not because most borrowers do a careful analysis of this mortgage's financial math and whether it aligns with their plans and needs, but because most homeowners simply do not want to contemplate any possibility of an adjustable rate mortgage at any time in their future.
But "life is what happens while you're busy making plans for other things" and life … (9 comments)
Actually, I don't have impressive arms and never have. While we're on the topic of needles, no amount of iron or swimming has ever "moved the needle" in terms of adding circumference to my puny pop guns. But...
RPM is pleased to add its newest jumbo program in the form of a 15/15 ARM. How does a 15-year ARM work? It's essentially a fixed rate, 30-year loan that has only a single adjustment at the 15-year mark.
Meant to cover the borrowing needs of the vast majority --- those who will, on average, hold a loan for … (0 comments)
ARM vs. Fixed
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