Author: super_admin

The Fed's pattern of rate hikes through early 2022 to mid-2023 culminated in a pause, announced at their latest meeting on March 20, 2024. Despite this pause, we've seen mortgage rates fluctuate. A notable instance was the decrease in rates in late December, despite the Fed's decision to maintain its key rate during its December 13 meeting. Lawrence Yun, the chief economist at the National Association of Realtors, explains that the bond market, including mortgage-backed securities, often adjusts longer-term interest rates in anticipation of future Fed policies. While the Fed plans to cut rates later this year, the exact timing remains uncertain. While the rates have remained unchanged, there's an expectation of three rate cuts in 2024. How the Federal Reserve Influences Borrowing Costs The Fed sets borrowing costs for…

In the realm of home financing, interest-only mortgages present a unique blend of short-term affordability and long-term considerations. If you're contemplating this type of mortgage, understanding its mechanics, benefits, and potential pitfalls is crucial. What is an Interest-Only Mortgage? Interest-only mortgages allow borrowers to pay only the interest component of their loan for a predetermined period, usually 7 to 10 years. During this time, you won't pay down the principal balance. After this phase, the loan reverts to a standard amortizing mortgage, where both principal and interest are paid, typically at a variable rate. A Brief Historical Context These mortgage types gained traction in the early 2000s, offering immediate low payment relief. However, they played a significant role in the 2007 housing crisis and subsequent recession, leading to stricter regulations…