With mortgage rates rising again, somewhat unexpectedly, a thought crossed my mind if you are currently home shopping. Two years ago, I brought up the idea of adjusting the maximum purchase price to a lower level when searching for a property. This post was prompted by several home sales that were exceeding demand at the … Read more
When the housing market collapsed in the early 2000s, new mortgage rules emerged to prevent a similar crisis in the future. The Dodd-Frank Act gave us both the ability-to-repay rule and the qualified mortgage rule (ATR/QM rule). The ATR requires creditors to “make a reasonable, good faith determination about a consumer’s ability to repay a … Read more
If you’ve been paying attention, you’ve probably noticed that mortgage rates have quietly returned to closer to 7%. While 7% mortgage rates seemed to be a thing of the past, they returned just as quickly as they disappeared. For reference, the 30-year fixed rate averaged about 8% a year ago, before it began its decline … Read more
Mortgage Questions and Answers: “Are your mortgage payments increasing?” While this seems like a no-brainer question, it’s actually more complicated than it seems. Do you see, There are a number of different reasons why mortgage payments may increaseregardless of the obvious change in interest rates. But let’s start with this and go from there. And … Read more
Published on: May 17, 2024 Banks and non-banking financial companies are financial institutions that play important roles in the financial world. But what specifically distinguishes NBFCs from banks? Banks are traditional institutions that accept public deposits, lend to individuals and businesses, and provide commercial banking and other financial services. On the other hand, non-banking financial … Read more
Published on: June 12, 2024 Imagine you need to cover an unexpected expense, perhaps a car repair or a medical bill. Should you use a personal loan or a credit card? Both credit cards and personal loans provide a way to access money quickly, but they are not one-size-fits-all solutions. Let’s take a look at … Read more
Published on: June 14, 2024 Secured and unsecured loans are two main categories of loans with one major difference – the need for collateral. For example, while buying your dream home, you may be thinking of applying for a loan but notice that the interest rates on home loans are much lower than the interest … Read more
While applying for a loan, lenders take into consideration several factors to ensure that you are a responsible borrower who can comfortably repay the debt. Lenders will only lend you money when they know you can repay it, but how can they be sure? This is where the debt-to-income (DTI) ratio comes into play. It’s … Read more
Zillow recently began airing a “Homeowner Mates” commercial. It depicts three women moving into a house together. It shows the individual ‘power to buy’, followed by ‘power to buy’, the latter of which combines the purchasing power of the three. The three women have individual purchasing power of $117,000, $124,000, and $131,000, but their total … Read more
Have you ever wondered why you pay interest on a loan or earn interest on your savings? It all comes down to interest rates. Interest rates affect everything from mortgages and auto loans to the financial activities of businesses and governments. When you borrow money, you pay a fee to use it for a certain … Read more