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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…

Navigating the complex world of commercial mortgages can be a daunting task for any business owner. According to IBIS World, there are 4,867 commercial lenders across America. The chances of a commercial borrower finding the right one on their own is about as likely as finding a needle in a haystack. This is where the expertise of a seasoned mortgage broker becomes invaluable. Here’s why working with a knowledgeable broker is crucial for securing the best commercial deal. 1. Expertise in Lender Preferences Commercial mortgage brokers have a deep understanding of the diverse landscape of lenders. They are well-versed in the specific preferences that different lenders have regarding commercial deals. Some lenders might have a particular affinity for certain geographic locations, while others may focus on specific types of properties…

As we navigate the current economic landscape, savvy borrowers and investors are keenly aware of the potential for lower interest rates in the future. The Federal Reserve’s monetary policy hints at forthcoming rate cuts, which could significantly impact your commercial loan decisions. One critical aspect to consider when securing a loan is the prepayment penalty, a clause that can have a profound effect on your financial flexibility. The Downside of Prepayment Penalties Prepayment penalties are charges that lenders impose if you pay off your loan early. These penalties can be as high as 5% of the loan amount if you refinance or pay off your loan within the first year. While this might seem like a minor detail at the outset, it can lead to substantial costs, especially if interest…

Mortgage rates have seen a decline across the board this week, providing a glimmer of hope for prospective homebuyers. According to the latest data, rates for 30-year fixed, 15-year fixed, 5/1 adjustable-rate mortgages (ARMs), and jumbo loans have all dropped. This slight decrease offers some relief amidst the continuing challenges of high prices and elevated interest rates. Despite inflation cooling somewhat, homebuyers still face significant hurdles in the current market environment. The Federal Reserve's recent decision to hold off on changing interest rates at their June 12 meeting highlights the ongoing uncertainty in economic policy. The Fed’s stance of maintaining higher interest rates for an extended period appears increasingly untenable as consumer spending pulls back and economic indicators suggest potential rising unemployment. As the economic landscape evolves, there is speculation…