Blog – Page 6 of 334

18

Oct

Home Mortgage TipsCash Out Refinance, Credit Card Debt, Debt ConsolidationÂ

Is a Cash-Out Refinance the Answer to High Credit Card Bills?

If your credit card debt is piling up, a cash-out refinance could be the solution you need to manage your financial situation. By leveraging the equity in your home, you can consolidate your high-interest debts into a lower-interest mortgage, potentially giving you relief from hefty monthly payments. How a Cash-Out Refinance Works A cash-out refinance allows you to replace your existing mortgage with a new one that’s higher than what you currently owe. The difference is then provided to you in cash, which you can use to pay off your credit card debt or other high-interest obligations. Here's a breakdown…

17

Oct

By Todd Grey

Mortgage TipsMortgage Options, Shared Equity, Traditional Loans

Shared Equity vs. Traditional Loans

When it comes to purchasing a home, most buyers tend to opt for traditional financing methods like Conventional, FHA, or VA loans. These tried-and-true options have been the cornerstone of home financing for decades. However, an alternative called a Shared Equity Agreement (SEA) is also available, which some may find appealing. Let’s discuss what a Shared Equity Agreement is and why traditional financing options are often a better choice for homebuyers. What is a Shared Equity Agreement (SEA)? A Shared Equity Agreement is essentially a partnership between a homebuyer and an investor. In this arrangement, the investor provides a portion…

16

Oct

By Todd Grey

Home MortgageHome Financing, Mortgage Points, Mortgage Tips

Understanding the Financial Power of Mortgage Points

In the world of home financing, mortgage points are a powerful yet often misunderstood tool that can significantly impact your long-term financial outlook. Whether you're purchasing a home or refinancing, understanding how these points work can help you make more informed decisions that align with your financial goals. What Are Mortgage Points? Mortgage points, also known as discount points, are a way for borrowers to reduce the interest rate on their loan by making an upfront payment. Each point typically costs 1% of the total loan amount and can reduce your interest rate by around 0.25%. The idea is simple:…

15

Oct

By Todd Grey

MortgageFannie MaeÂ , Mortgage 101, Mortgage Banking

Where Does the Money for Your Mortgage Loan Really Come From?

If you're considering a mortgage loan, you might wonder where the money actually comes from. It’s not as simple as walking into your neighborhood bank and getting a loan directly from their vault, like it used to be decades ago. Today, the mortgage lending process is part of a larger, more complex system involving major institutions like Fannie Mae, Freddie Mac, and Ginnie Mae. Let’s take a closer look at how it all works. The Big Players: Fannie Mae, Freddie Mac, and Ginnie Mae In today’s mortgage industry, most of the money for home loans originates from three major government-sponsored…

14

Oct

By Todd Grey

Financial ReportsFinancial Report, Jobless Claims, Mortgage Rates

What’s Ahead For Mortgage Rates This Week – October 14th, 2024

The CPI and PPI reports delivered their data, showing inflation figures slightly below expectations. However, the positive impact of these reports was tempered by hawkish comments from Federal Reserve members during recent meetings. Despite this, the overall outlook remains optimistic, as further rate cuts are anticipated. Lending partners have also responded positively, significantly lowering their lending rates over the past month. Consumer Credit Consumer credit increased by $8.9 billion in August, following a revised $26.6 billion surge in July, the Federal Reserve reported on Monday. This represents a 2.1% annual growth rate in August, a slowdown from the 6.3% rise…