Mortgages

Negative Real Mortgage Rates Means Don’t Pay Down Extra Principal

As a homeowner with a mortgage, the holy grail is having a mortgage rate below the 10-year bond yield. When you have this situation, it’s like living for free and you should not pay down extra principal. If you had the money, you could invest an amount equal to your mortgage into a 10-year Treasury […]

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2022 Conforming Loan Limits Increase To Record Highs, Improving Affordability

The Federal Housing Finance Agency (FHFA) has announced new 2022 conforming loan limits for conventional loans. The baseline conforming loan limit for 2022 will be $647,200, up $98,950 from 2021’s limit of $548,250. That is a record-high increase of 18% based on the FHFA House Price Index. In higher-cost areas, the new loan limit increases

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A 15-Year Mortgage Is Probably Best, But It Has One Big Disadvantage

Out of all the mortgages out there, a 15-year mortgage will likely save you the most amount of interest expense. 15-year mortgage rates are almost always lower than 30-year fixed mortgage rates. However, the absolute payment is usually larger given the shorter amortization period (15 vs. 30 years). But the big benefit of the mortgage

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State Of The Mortgage Industry: Things To Know Before Buying A Home

Before buying a home in the midst of a pandemic, you need to understand the state of the mortgage industry. This information is vital if you want to make the best purchase possible with the information available. In 2022, as we get out of the pandemic, the state of the mortgage industry is changing. Lending

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How To Get The Lowest Mortgage Interest Rate Possible

This post will teach you how to get the lowest mortgage interest rate possible to save money. Mortgage interest rates have increased by roughly 3% since the start of 2022. Therefore, it’s more important than ever to position yourself for a lower rate. I’ve refinanced multiple mortgages across multiple properties since 2003, when I bought

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Mortgage Market Abnormalities: Take Advantage To Get The Best Rates

When there are mortgage market abnormalities, we must take advantage to get the lowest rate and best terms possible. Mortgage market abnormalities happen all the time, as I’ll show in this post. There were two mortgage abnormalities to learn from in 2021. This case study can help us take advantage of future mortgage market abnormalities

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