The Federal Reserve Doesn’t Control Mortgage Rates, The Market Does
Why The Federal Reserve Does Not Control Mortgage Rates
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Mortgages
The Triple Benefit Of Paying Off Your Mortgage Early
In 2022, my wife and I paid off our vacation property mortgage after 15 years of ownership. Now that it’s been a while since we paid off the mortgage, I realized there is a triple benefit to paying it off early. I didn’t realize one of these benefits when we paid off another rental property
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Was Getting An ARM Before Inflation And Rates Went Up A Bad Move?
Given inflation and mortgage rates have gone up aggressively since August 2020, was getting an ARM back then a bad move? Maybe. But I’ll argue probably not. Let me reason why. One of the best things about running Financial Samurai is having readers criticize my financial beliefs and actions. So long as the criticism is
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Why Pay Off A Negative Real Mortgage Rate When Inflation Is So High
Paying off a mortgage with a negative real interest rate is a suboptimal financial move. However, that’s exactly what I did in this unusually high inflationary environment. Bad move? Maybe. My mortgage rate was a 30-year fixed at 4.25% and the latest inflation figure was 9.1%. Therefore, it had a negative real mortgage rate of
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Why It’s Better To Pay A Small Mortgage Fee Than Get A Large Credit
Imagine getting a $55,077 mortgage credit rather than paying a mortgage fee to get a new loan. A $55,077 mortgage credit was what I was quoted for a $4.125 million, 10/6 ARM at a 3.625% rate. Surely receiving a large credit is better than paying a mortgage fee right? Not necessarily. The higher the mortgage
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Well-Qualified Borrowers Are Paying Much Lower Mortgage Rates
House prices have cooled and will likely decline in some of the hottest markets. However, on my quest to get financing to conquer my real estate FOMO, I realized a positive datapoint for the U.S. housing market. Well-qualified borrowers are paying much lower mortgage rates than the headline rates you see in the news. There
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Mortgages By Interest Rate: Homeowner Tenure To Increase
Let’s take a look at the latest mortgages by interest rate. By understanding the composition of mortgages, we’re better able to understand how a rise in interest rates will affect the housing market and the consumer. Since November 2018, the vast majority of homeowners with a mortgage have refinanced and taken advantage of lower rates.
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How To Reduce Mortgage Fees And Get The Best Rate Possible
This post will show you how to reduce mortgage fees and get the best rate possible. I have been refinancing and taking out new mortgages since 2003. As a result, I’ve become an expert at squeezing as much value as possible out of every mortgage. Mortgage fees are an inevitability. How do you expect anybody
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The Difference Between A 5/1 ARM And 5/5 ARM And When To Get Either
Have you ever wondered what the difference is between a 5/1 ARM and a 5/5 ARM or a 7/1 ARM and a 7/6 ARM and so forth? Let me explain in this article because the difference adds to another dilemma mortgage borrowers should consider. An adjustable-rate mortgage (ARM) is a home loan with an introductory
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Adjustable-Rate Mortgages As A Percentage Of Total Loans: So Low!
Since 2009, I have encouraged Financial Samurai readers to take out an adjustable-rate mortgage instead of a 30-year fixed-rate mortgage. The rationale was that we were in a downward interest rate channel, so why pay more in interest if you don’t have to? Further, the average homeownership tenure back in 2009 was only around 5-7
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