We’ve all heard about how interest rates are at an all-time low… and how they’re expected to go up within the next couple years. But for those who may be new to the home buying market, what exactly does “all-time low” mean? Let us put it in perspective for you… take a look at why now really is the best time to buy!Continue Reading → Share
Fixed Rate Loans
These loans are fixed for either a 10, 15, 20, 30 or now even 40 year period. They are amortized over the period of time you select, so the shorter the period the larger the monthly payment will be. Also, the shorter the time period you select the more significant the interest savings will be over the term of the loan. But one note of caution is that you should make sure that you ...Continue Reading → Share
Home loans can be generally placed into one of four categories; Conventional, Alt-A and Sub Prime and second mortgages/home equity lines of credit. We will briefly touch on what impacts rates for each of these types of loans.
Let’s start with the most common, conventional loans. Fannie Mae and Freddie Mac are quasi governmental agencies that set the guidelines for what is considered a conventional loan. If a loan meets Fannie or Freddie ...Continue Reading → Share
The mainstream mortgage market is no longer run or controlled by the banks. Wall Street has replaced the traditional bank and now pulls purse strings of this vast mortgage market via “mortgage backed securities.” A mortgage backed security (MBS) is simply a bond instrument in which anyone can invest. MBS’s are trading in the free and open market everyday just like stocks and bonds. The collateral for this investment is a group or “pool” of home mortgages just like the ...Continue Reading → Share