When it comes to refinancing your mortgage, knowing your strike rate—the interest rate at which refinancing becomes worthwhile—can save you thousands. But how do you decide what your strike rate should be? And how do you determine whether the market is moving toward your goal? In this post, we’ll break down the concept of a…
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When thinking about homeownership, many people assume their credit score is a barrier. The reality, however, often extends beyond just your credit score. Concerns like not having a sufficient down payment, limited savings, or carrying significant debt such as car loans or credit card balances often cloud the full picture. If you’ve been told by…
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You’re pre-approved for a mortgage and excited to begin your home search with your real estate agent. As you look for single-family homes, a common pattern may emerge—many homes may need some level of repair. Maybe the roof needs replacing, the gutters are old, or perhaps the exterior paint is peeling. It could be as…
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One of the biggest complaints consumers have had in the last ten years about getting a residential home loan is the continual jumping through hoops and requests for documents and paperwork. For some, this can be quite inconvenient, borderline stressful, and can really test one’s patience, especially when dealing with something tedious, unfamiliar, and sometimes…
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When interest rates are high, here’s how mortgage pricing works. Mortgage companies make money in two ways: the origination of the loan and the servicing of the loan, which involves collecting your monthly mortgage payments. When interest rates are higher, say around 7%, mortgage aggregators assess the value of that mortgage. They think, “If rates…
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The Hidden Risk of Lower Interest Rates: Why Refinancing May Not Be as Simple as It Seems As the possibility of lower interest rates looms on the horizon, many homeowners and buyers are excited about the idea of refinancing their loans and saving on their monthly payments. However, there’s a risk that comes with those…
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Why Federal Reserve Rate Cuts Don’t Directly Lower Mortgage Rates When the Federal Reserve announces a cut in interest rates, many people immediately assume that mortgage rates will drop as well. Unfortunately, this is a common misconception. When the Fed adjusts its rates—specifically the Federal Funds Rate—it doesn’t directly impact long-term mortgage rates. Instead, these…
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As we move through 2024, FHA streamline refinances are starting to make a significant comeback. This resurgence is driven by the potential for substantial monthly savings, particularly for those who purchased homes in 2023 or earlier. If your current interest rate is around 6.5% or higher, now might be the perfect time to consider an…
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