How Do Mortgage Points Cut Your Interest Costs?

Those who are involved in the real estate industry likely know that mortgage rates are at an all-time low. At the same time, nobody wants to pay more for a house than they have to. Some of the most important factors that dictate how much someone is going to pay for a house include points and interest rates. While interest rates are incredibly low, there is a way to make them lower. This comes in the form of points. This is additional money that is paid upfront to get a better deal over the life of the loan. Even though…
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Understanding the Mechanics of a HELOC Loan

For many homeowners, a Home Equity Line of Credit (HELOC) can be an attractive financial tool, offering a flexible way to access funds while leveraging their property's equity. A HELOC works differently from a traditional home loan or mortgage, providing borrowers with a revolving credit line that they can draw from as needed. What is a HELOC? A Home Equity Line of Credit is a type of loan that allows homeowners to borrow against the equity they have built in their property. Equity is the difference between the home's current market value and the outstanding mortgage balance. HELOCs are typically…
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Buying A Home With Cash Versus Low Interest Rate Mortgages

When deciding whether to buy a home with cash or to obtain a low-interest rate mortgage, there are several factors to consider. A cash offer can be very competitive in a real estate market, as it can give the buyer a significant advantage over buyers who need to obtain financing through a mortgage. Here are additional advantages and disadvantages of both. Advantages of buying a home with cash: You own the property outright, which means no mortgage payments are necessary. You may be able to negotiate a lower purchase price if you're able to pay in cash. You avoid interest…
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What’s Ahead For Mortgage Rates This Week – May 1, 2023

Last week’s economic reporting included readings on home prices, sales of new homes, and pending home sales. Monthly and year-over-year readings for inflation were published along with weekly reports on mortgage rates and jobless claims. February S&P Case-Shiller Housing Market Indices show slower home price growth National home prices continued to rise in February, but at a slower pace according to S&P Case-Shiller home price indices. Month-to-month home prices rose by  0.40 percent in February and matched analysts’ expectations, but were lower than January’s reading of  2.50 percent home price growth. S&P Case-Shiller’s 20-city home price index, which is frequently…
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Navigating A Market With Higher Interest Rate

Even though interest rates have gone up significantly during the past few months, there are still opportunities for you to find a home at a great price. The high interest rate can be discouraging for some people, but as long as you know how to navigate the market, you can still put yourself in a position to be successful. Put More Money Down The easiest way to combat a high interest rate is to reduce the amount of money you borrow. That means that you might need to put more money down. Of course, this means that you might need…
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