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The recent 0.50 basis point Fed rate cut has set the mortgage market buzzing, and we’ve been flooded with calls and emails from clients wanting to know their refinancing options. If you own an investment home with a mortgage rate between 7% and 8.5%, this post is specifically for you. For Investment Homes – Hold Off for Now We can refinance your investment home and likely bring your rate down to around 6.99%. However, refinancing comes with costs—typically between $3,000 and $6,000. My advice: wait. Here’s why: The Fed is expected to cut rates again on November 7 and December 18. These cuts will likely lower the 10-year Treasury yield, which directly influences mortgage rates. As a result, the spread between the 10-year yield and 30-year mortgage rates will shrink.…

Mortgage rates have dropped once again, offering a unique opportunity for both homebuyers and current homeowners, with rates at their lowest rate in over 18 months. For homeowners, this may be the perfect time to consider refinancing—replacing their existing mortgage with one that has a lower interest rate. If you’ve been holding off on refinancing due to high rates, now could be your chance to lock in savings. In recent years, refinancing activity plummeted as rates surged from 3 percent during the pandemic to as high as 8 percent in late 2023. However, with rates starting to dip, some homeowners who took out mortgages during the rate hike may find it beneficial to refinance now. For homeowners with adjustable-rate mortgages or those locked into higher rates, the current market conditions…

As a savvy homeowner or potential buyer, keeping an eye on interest rates and understanding how they might evolve can significantly impact your mortgage strategy. With the Federal Reserve expected to cut rates over the next few years, many people are wondering when the right time is to refinance. In this post, we’ll examine the historical relationship between Fed rate cuts, mortgage rates, and the 10-year Treasury yield, and why refinancing now—and potentially again every six months—may be your best financial move.   Historical Context: Fed Rate Cuts and Mortgage Rates The Federal Reserve’s actions have historically influenced mortgage rates, but not always in a direct or immediate way. Mortgage rates tend to follow long-term bond yields, especially the 10-year Treasury yield, more closely than the Fed’s short-term rate changes.…

When you’re in the process of refinancing your home, you expect a smooth, straightforward experience. Unfortunately, the moment your credit is pulled for a legitimate mortgage application, your information can become a target for unwanted solicitations. This is due to what’s called credit trigger leads, and they can put you at risk of being overwhelmed by aggressive and often unscrupulous mortgage lenders who want to hijack your refinance. What Are Credit Trigger Leads? Credit trigger leads are generated when a credit inquiry is made—such as when you apply for a mortgage refinance. Once your credit is pulled, credit bureaus like Equifax, TransUnion, and Experian sell your information to various businesses, including mortgage lenders. These companies are notified that you’re likely looking for a new mortgage and see this as an…

While it’s true that mortgage debt can feel like a burden in retirement, it’s important to remember that your home remains a valuable asset. According to a recent study from the Michigan Retirement and Disability Research Center, many retirees with mortgages still have the potential to thrive financially—it just requires some thoughtful planning. For those who find their mortgage payments manageable, there’s no need to worry. If you love your home and your mortgage fits within your retirement budget, there’s no reason to change a thing. The idea of paying off your mortgage before retirement has long been a goal, but times are changing. Today, many people are buying homes later in life or taking advantage of low interest rates to refinance. This means more retirees are entering their golden…

This week marks a positive shift for prospective homebuyers, as mortgage rates have stayed below the 7 percent threshold. This is the first time since February that the average 30-year fixed rate has dipped into the sub-7 range. The catalyst for this decrease is the growing optimism that the Federal Reserve might cut rates in the near future, providing a glimmer of hope for those looking to secure a mortgage. Currently, the average rate for a 30-year fixed mortgage is 6.90%, slightly down from 7.02% four weeks ago and 6.98% a year ago. For those considering a shorter-term commitment, the 15-year fixed mortgage stands at 6.24%, and the 30-year jumbo mortgage is at 6.97%. These rates include an average total of 0.28 discount and origination points, which are fees paid…

  If you purchased a home in the last 24 months and your mortgage rate is over 7%, we have good news for you. Market analysts are predicting that the Federal Reserve may cut interest rates as early as September, potentially pulling the 30-year fixed mortgage rates down to the 6-6.5% range. This is a golden opportunity for you to refinance and save a significant amount on your monthly payments with Jumbo Loan Experts. Why You Should Prepare Now Refinancing your mortgage can be a game-changer, especially when rates drop. However, with a potential rate cut on the horizon, thousands of homeowners will be rushing to refinance at the same time. Here’s why you should start preparing now with Jumbo Loan Experts: High Demand, Limited Supply: The mortgage industry has…

The landscape of home buying has evolved significantly, and this is particularly evident when examining down payment trends in 2024. The median down payment on a home in the U.S. during the first quarter of 2024 was $26,700, which represents about 8% of the median home purchase price at that time. This figure highlights a shift from the traditional 20% down payment that many prospective homeowners believe is necessary. The minimum down payment required for a mortgage can vary greatly, depending on the home's cost and the type of mortgage. Despite the belief that a 20% down payment is standard, many mortgages today allow for much smaller initial investments. Some loans require as little as 3% or 3.5%, and certain loans, like VA and USDA loans, have no minimum down…

For first-time homebuyers considering their mortgage options, a convertible adjustable-rate mortgage (ARM) offers a compelling combination of lower initial interest rates and monthly payments, along with the flexibility to switch to a fixed-rate mortgage later. This option can be particularly attractive for those seeking initial affordability. However, understanding the specifics of a convertible ARM is crucial to determine if it aligns with your financial needs. A convertible ARM is an adjustable-rate mortgage that includes a conversion clause, allowing borrowers to switch from an adjustable rate to a fixed rate without refinancing. This option usually becomes available after an initial fixed-rate period of five, seven, or ten years. While there is a small fee associated with this conversion, it can result in more stable and predictable monthly payments for the remainder…

I recently attended a seminar for commercial lenders in Atlantic City, and one of the things that came through was specifically what lenders were looking for to get approved for a commercial mortgage. So, I have put this together as a cheat sheet for the average punter who does not have bankers beating down his door. Securing a commercial mortgage can be a complex process, but understanding what lenders are looking for can significantly improve your chances of approval. Here are seven critical criteria they focus on:   1. Cash Flow and Debt Service Coverage Ratio (DSCR) Greater Than 1.3 The Debt Service Coverage Ratio (DSCR) is a crucial metric that lenders use to assess a property’s cash flow relative to its debt obligations. A DSCR greater than 1.3 means…