Tag Archive for: interest rate

Interest-Only Loans Can Shave $300 From Payment; Beware Of Slimy Marketing

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Interest-only loans are finally becoming competitive enough to make them a viable option for borrowers seeking payment relief. Interest-only loans are NOT a good option if borrowers end up with a 1% higher rate. But now that rate spread is closer to 3/8% for qualified borrowers. A $500,000 interest-only loan at 6.875% has a payment of $2,865. That same loan fully amortized at 6.5% has a payment of $3,160. NOTE: Many lenders use the same rate for the amortized loan as they do for the interest-only loan in their marketing. But that is misleading, as there is always a rate-premium to be paid for interest-only.Read More

Homeowners Are Getting Ripped Off By Call Centers

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Note To Agents Everywhere: your past clients are getting ripped off left and right. We know this because we’re seeing so many examples right now, and it’s worse than ever. Fortunately, there is a simple solution. The % of mortgages above 6% (21% of all mortgages) is now higher than the % of mortgages below 3% (20% of mortgages) – something I thought we might never see a few years back.Read More

15 Factors That Impact Your Mortgage Rate

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We often have buyers or agents ask: “What is your 15-year rate today?” Or “What is today’s interest rate?” We always respond by explaining there is “no single rate” because […]Read More

Will Lower Rates Bring Back A “Sellers Market?” When Will A Sellers Market Return?

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A Texas agent recently asked me when I think we might return to a “sellers’ market” (where demand for housing exceeds supply; 2021 was probably the strongest sellers' market in history). There are, of course, competing factors here, pushing the housing market in both directions, but there is one huge factor that nobody is considering (discussed below).Read More

Interest Only Loans Don’t Make Sense; 2-1 Buydowns Move Listings; Mortgage Rate Lockdowns

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A loan officer recently tried to entice a borrower away from us with an interest-only loan. The problem was that the rate was 7.99%. Our rate for a fully amortized loan for that borrower was 7.25%.Read More

Trump Demands Lower Rates! LOL; 2nd Mortgages For Investment Properties

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We now have 2nd mortgages for non-owner-occupied (investment) properties. The LTVs are limited to 75%, but this is still an excellent product for any investor looking to pull cash out of an investment property (a request we get surprisingly often).Read More

12 Essential Facts About Credit Repair

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Learn 12 essential facts about credit repair, including costs, timelines, lender policies, and how it can improve credit scores and lower interest rates.Read More

Factors Impacting Your Interest Rate; Assumable Loans; Financialized Economy

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15 Factors That Affect Your Mortgage Rate This is another reminder that many factors impact every borrower’s interest rate including credit score, loan amount, down payment % or loan-to-value ratios, […]Read More

Seller-Paid “Temporary Buydowns” vs. Seller-Paid Closing Costs; Limits? What About Commissions?

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A seasoned agent asked me these excellent questions today: Is there a different limit for a seller-paid “temporary rate buydown” vs seller-paid credit for closing costs? No, but see below […]Read More

Bond Yields/Interest Rates Soar! Uh Oh! What’s Really Scary?

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I was at a mortgage conference yesterday with 50 of the biggest producers in the industry, and there was panic in the room. The reason? The bond market was melting down in response to a much higher than expected “job openings” number from the “JOLTS” report.Read More

WHEN Will the Recession Come?

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EVERYONE expected the entire country and much of the world to be mired in a horrible recession by now. And yet, we’re still growing. I blogged about the reasons why […]Read More

How to Save On Your Mortgage With A 3-2-1 Buydown

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Are you in the real estate market to buy a home and looking for ways to save on your home loan payments? If so, you've come to the right place! In this blog post, we'll be discussing 3-2-1 buydowns, an intriguing option for home buyers.Read More

Mortgage Rate Buydown Options for Homebuyers

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A mortgage rate buydown is a technique used to lower the interest rate on a mortgage loan. It involves paying additional fees or points upfront, which reduces the interest rate for the entire loan term or for a portion of the loan term. By lowering the interest rate, homebuyers can reduce their monthly mortgage payments, which can lead to substantial savings over time. Now that we understand the concept, let's explore the different types of mortgage rate buydown options and how they work.Read More

Fannie Mae’s Greatest Hits! (You Don’t Want To Miss This)

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We recently locked a refinance for a borrower at 6.875% – after he was quoted 5.25% by another loan officer. The borrower did not use the other loan officer because […]Read More