MortgageCast

Lenders who originate mortgages often sell them to be packaged into Mortgage-Backed Securities (MBS), which are then sold to investors. The interest rate, or yield, that investors demand to buy these MBS directly determines the rates that lenders can offer. When the Fed buys MBS (as in QE), it pushes MBS prices up and their yields down, allowing lenders to offer lower mortgage rates.

Funds are not given directly to the borrower. They are placed in an escrow account and released to the contractor in “draws” as pre-determined stages of the work are completed and verified by a third-party inspector. This protects both you and the lender, ensuring the work is done correctly and the funds are used appropriately.

If you’re self-employed, you’ll generally need to provide two years of personal and business tax returns, along with year-to-date profit and loss statements. For multiple income sources (e.g., bonuses, rental income, commissions), you’ll need documentation like tax returns and account statements to verify the amount and consistency.

Unlike renters, homeowners bear the full cost of replacing major systems when they fail.
Roof: $5,000 - $15,000+
HVAC System: $5,000 - $10,000+
Water Heater: $800 - $2,500
It’s crucial to have a robust emergency fund to cover these unexpected, significant expenses.