Posts

2nd Mortgage vs. HELOC (Home Equity Line); Which Is Better?

Yesterday’s blog, 5 Reasons to Get a HELOC, was inspired by a question from my nephew – as he is a perfect candidate for a HELOC. He is in his early thirties – and he has a family to support, about a half-million in equity, a very low rate first mortgage, an excellent job, and […]Read More

There Is No “One Rate” or “A Rate”

I have been hearing news reporters and commentators say: “…the Fed raised ‘the rate,’” over and over, as if there is a single interest that the Fed has the power to control. As a related aside, borrowers also often ask us: “What is your rate?” – as if there is one rate for borrowers too, […]Read More

Mortgage Rates Do Not Equal 10-Year Treasury Rates

The 10-Year Treasury Yield dropped almost 4/10% recently – so why didn’t mortgage rates drop that much? The 10-Year Treasury yield (interest rate) is a reflection of what it costs the government to borrow money and is perhaps the most influential interest rate/yield in the world. Hence, when the 10-Year yield drops, the media will […]Read More

DANGER! Home Equity Lines & Inflation

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What Are “Interest Rates?” Do They All Move In Unison?

This is from a training module we just updated for our now very elaborate JVM Lending Training Program©. I thought it made for perfect blog fodder, as it is information all of us in real estate and mortgages should understand. We are all so focused on mortgage interest rates that we often forget that there […]Read More

Surprising Reasons Why People Are Refinancing

The Fed raised short-term rates again yesterday but rates still remain much lower than expected. Part of the reason is that investors think the rate increases will hurt the economy at this point. As a result, investors moved from stocks to bonds and this demand for bonds keeps rates lower than expected. In any case, […]Read More

Prime Rate Up; HELOCs Up; PMI Down

Prime Rate was 3.5% last year at this time. Currently the Prime Rate is 4.25%. It has been climbing steadily with every increase in the Fed Funds Rate. Prime Rate is the interest rate that large companies pay to borrow funds for short periods. It matters to real estate b/c Home Equity Lines of Credit […]Read More