Are you wondering why does it take so long to refinance a mortgage? The simple answer is because lending standards have tightened tremendously since the 2008-2009 Global Financial Crisis. Underwriters are asking for more documentation to prove your income and net worth. The banking sector lent too loosely before the crisis. Then the banks lost […]
Why Does It Take So Long To Refinance A Mortgage? Read More »
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
Negative Real Mortgage Rates Means Don’t Pay Down Extra Principal Read More »
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
2022 Conforming Loan Limits Increase To Record Highs, Improving Affordability Read More »
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
A 15-Year Mortgage Is Probably Best, But It Has One Big Disadvantage Read More »
The beauty of an economic downturn is cheap credit. And when there is a global pandemic, mortgage rates tend to go dow. As a result, every homeowner should be refinancing their mortgage right now as rates hover near all-time lows. Here are some home mortgage refinancing tips from someone who has refinanced many times. Since
Home Mortgage Refinancing Tips For A Smarter You Read More »
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. Today, lending standards are still very tight. However, with still-high mortgage rates, lenders are doing less business and
State Of The Mortgage Industry: Things To Know Before Buying A Home Read More »
The ideal mortgage amount was $1,000,000 before the Tax Cut & Jobs Act was passed in 2018. Today, the ideal mortgage amount is $750,000, if your income can afford it. Assuming you put down 20%, a $750,000 mortgage means you’re buying a $937,500 house The reason why $1,000,000 was ideal was because that was the
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If you’re focused on paying off your mortgage, good for you. It’s generally always good to pay down debt. However, I’d also like to share with you the biggest downside to paying off your mortgage that may surprise you. It’s been nine years since I paid off my rental property mortgage. It was a mortgage
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If you are coming here from my newsletter, I meant to link to this post instead: The Ideal Length To Hold Onto Your Mortgage. So go check that one out first, but you might as well read this one too. This post will teach you how to get the lowest mortgage interest rate possible to
How To Get The Lowest Mortgage Interest Rate Possible Read More »
Back in 2011, I decided I wouldn’t pay off my mortgage until I retired. I was still working in banking and had a strong amount of cash flow. I thought I was going to work for at least another five years. Then, in 2012, I retired by negotiating a severance package that provided for six
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