Thinking About Refinancing?

Mortgage rates have dropped once again, offering a unique opportunity for both homebuyers and current homeowners, with rates at their lowest rate in over 18 months. For homeowners, this may be the perfect time to consider refinancing—replacing their existing mortgage with one that has a lower interest rate. If you’ve been holding off on refinancing due to high rates, now could be your chance to lock in savings. In recent years, refinancing activity plummeted as rates surged from 3 percent during the pandemic to as high as 8 percent in late 2023. However, with rates starting to dip, some homeowners who took out mortgages during the rate hike may find it beneficial to refinance now. For homeowners with adjustable-rate mortgages or those locked into higher rates, the current market conditions…
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Retiring with a Mortgage: What You Need to Know

While it’s true that mortgage debt can feel like a burden in retirement, it’s important to remember that your home remains a valuable asset. According to a recent study from the Michigan Retirement and Disability Research Center, many retirees with mortgages still have the potential to thrive financially—it just requires some thoughtful planning. For those who find their mortgage payments manageable, there’s no need to worry. If you love your home and your mortgage fits within your retirement budget, there’s no reason to change a thing. The idea of paying off your mortgage before retirement has long been a goal, but times are changing. Today, many people are buying homes later in life or taking advantage of low interest rates to refinance. This means more retirees are entering their golden…
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Market Watch – Rates Dropping Below 7?

This week marks a positive shift for prospective homebuyers, as mortgage rates have stayed below the 7 percent threshold. This is the first time since February that the average 30-year fixed rate has dipped into the sub-7 range. The catalyst for this decrease is the growing optimism that the Federal Reserve might cut rates in the near future, providing a glimmer of hope for those looking to secure a mortgage. Currently, the average rate for a 30-year fixed mortgage is 6.90%, slightly down from 7.02% four weeks ago and 6.98% a year ago. For those considering a shorter-term commitment, the 15-year fixed mortgage stands at 6.24%, and the 30-year jumbo mortgage is at 6.97%. These rates include an average total of 0.28 discount and origination points, which are fees paid…
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Down Payments in 2024

The landscape of home buying has evolved significantly, and this is particularly evident when examining down payment trends in 2024. The median down payment on a home in the U.S. during the first quarter of 2024 was $26,700, which represents about 8% of the median home purchase price at that time. This figure highlights a shift from the traditional 20% down payment that many prospective homeowners believe is necessary. The minimum down payment required for a mortgage can vary greatly, depending on the home's cost and the type of mortgage. Despite the belief that a 20% down payment is standard, many mortgages today allow for much smaller initial investments. Some loans require as little as 3% or 3.5%, and certain loans, like VA and USDA loans, have no minimum down…
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What Is A Convertible ARM?

For first-time homebuyers considering their mortgage options, a convertible adjustable-rate mortgage (ARM) offers a compelling combination of lower initial interest rates and monthly payments, along with the flexibility to switch to a fixed-rate mortgage later. This option can be particularly attractive for those seeking initial affordability. However, understanding the specifics of a convertible ARM is crucial to determine if it aligns with your financial needs. A convertible ARM is an adjustable-rate mortgage that includes a conversion clause, allowing borrowers to switch from an adjustable rate to a fixed rate without refinancing. This option usually becomes available after an initial fixed-rate period of five, seven, or ten years. While there is a small fee associated with this conversion, it can result in more stable and predictable monthly payments for the remainder…
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Market Watch: Rates Trending Down

Mortgage rates have seen a decline across the board this week, providing a glimmer of hope for prospective homebuyers. According to the latest data, rates for 30-year fixed, 15-year fixed, 5/1 adjustable-rate mortgages (ARMs), and jumbo loans have all dropped. This slight decrease offers some relief amidst the continuing challenges of high prices and elevated interest rates. Despite inflation cooling somewhat, homebuyers still face significant hurdles in the current market environment. The Federal Reserve's recent decision to hold off on changing interest rates at their June 12 meeting highlights the ongoing uncertainty in economic policy. The Fed’s stance of maintaining higher interest rates for an extended period appears increasingly untenable as consumer spending pulls back and economic indicators suggest potential rising unemployment. As the economic landscape evolves, there is speculation…
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What is a Zombie Mortgage Anyway?

What is a Zombie Mortgage Anyway?

Don't let zombie mortgages happen to you. Contact Anchor Mortgage today at 843-367-9900 A Zombie Mortgage is when a homeowner falls behind on mortgage payments and leaves the home. Those in zombie debt assume the bank will go forth with foreclosure, but these suddenly resurface. If the bank does not complete the foreclosure, the homeowner remains legally responsible for the property AND the mortgage. This is not very economical as unpaid taxes, insurance, and maintenance costs accumulate under your nose. If you have discovered that you have a zombie mortgage, it is essential to understand the right steps to overcome this issue. First, you will need to verify the status of your mortgage by contacting your lender and checking public records. You must request detailed information about your mortgage, such…
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Jumbo vs. Conventional Loans

If you're seeking financing for a home over a million dollars, chances are you have heard these options: jumbo loans and conventional loans. A conventional loan, typically offered by private lenders, is what most people think of when considering a mortgage — a fixed interest rate loan covering most of a home's purchase price. While a jumbo loan technically falls under the conventional loan category, it is distinct in several key ways, particularly in the amount of money it allows you to borrow. What Defines Jumbo and Conventional Loans? A conventional loan is not backed by the federal government but instead originated, financed, and guaranteed by private lenders. These loans can be either conforming or nonconforming. Conforming loans meet the Federal Housing Finance Agency (FHFA) requirements, including loan size limits…
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What is a Zombie Mortgage and Why Should You Care?

  What is a Zombie Mortgage, and How Can You Resolve it? A Zombie Mortgage is when a homeowner falls behind on mortgage payments and leaves the home. Those in zombie debt assume the bank will go forth with foreclosure, but these suddenly resurface. If the bank does not complete the foreclosure, the homeowner remains legally responsible for the property AND the mortgage. This is not very economical as unpaid taxes, insurance, and maintenance costs accumulate under your nose. If you have discovered that you have a zombie mortgage, it is essential to understand the right steps to overcome this issue. First, you will need to verify the status of your mortgage by contacting your lender and checking public records. You must request detailed information about your mortgage, such as…
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Mortgage Income Requirements Explained

From conventional to government loans, there are many types of mortgages to suit borrowers with varying credit scores and financial means. While there isn’t a standard baseline income to qualify for a mortgage, you’ll generally need enough income to repay the loan. Understanding how qualifying for a mortgage works and how your income can impact the decision is crucial for prospective homeowners. There is no single, universal income requirement to qualify for a mortgage. It all depends on the amount you need to borrow, current interest rates, and the type of loan you’re applying for. Rather than requiring a specific amount of income, mortgage lenders review your credit and financial information to determine how much mortgage you qualify for and whether you can afford the monthly mortgage payment. Lenders evaluate…
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