The vision of a perfect home often extends beyond what is available on the open market. For many, the ideal path involves building from the ground up ...
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A cash-out refinance is a powerful financial tool that allows homeowners to access the wealth they have built in their property. Unlike a traditional ...
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For homeowners who have built up significant equity, their property can become a powerful financial tool. Two of the most common methods for accessing...
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Accessing the equity in your home can feel like discovering a hidden treasure chest. After years of mortgage payments and, ideally, rising property va...
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The journey of homeownership rarely ends with that very first mortgage. As life unfolds and circumstances shift, your initial home loan may no longer ...
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For many homeowners, their property represents their most significant financial asset, one that grows in value over time. This growth, known as home e...
Read MoreThis is a standard and very common practice in the mortgage industry. Lenders often sell the “servicing rights” to other companies to free up capital, allowing them to originate more loans. The terms of your original mortgage loan note typically give the lender the right to do this.
Debt consolidation with a second mortgage involves taking out a new loan—such as a Home Equity Loan or Home Equity Line of Credit (HELOC)—using your home’s equity. You then use this lump sum of cash to pay off multiple, high-interest debts (like credit cards or personal loans). This process consolidates several monthly payments into a single, more manageable mortgage payment.
Whether you should buy points depends on your individual circumstances and goals. Consider paying points if:
You have extra cash available for closing costs.
You plan to stay in the home long enough to “break even” (the point where your monthly savings exceed the cost of the points).
You prefer long-term savings over short-term cash flow.
Mortgage rates are not set by a single entity but are influenced by a complex mix of factors, including:
The Overall Economy: Strong economic growth can lead to higher rates, while a weak economy often leads to lower rates.
Inflation: Lenders need to charge higher interest rates when inflation is high to ensure their return isn’t eroded over time.
The Federal Reserve: While the Fed doesn’t set mortgage rates, its policies on short-term interest rates influence the overall financial environment, which affects long-term mortgage rates.
The 10-Year Treasury Yield: Mortgage rates often move in tandem with this key benchmark.
Your Personal Finances: Your credit score, down payment, and debt-to-income ratio (DTI) directly impact the specific rate a lender offers you.
The absolute minimum depends on the loan program:
Conventional Loan: Typically 620
FHA Loan: 500 (with 10% down) or 580 (with 3.5% down)
VA Loan: Varies by lender, but often 620
USDA Loan: Varies by lender, but often 640
It’s important to note that these are minimums, and a higher score will always secure better terms.
