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…
Read More
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…
Read More

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…
Read More

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…
Read More

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…
Read More

Buying A Home With All-Cash Or A Mortgage

As of March 2024, the National Association of Realtors reported that 28% of home purchases were made with all-cash offers. This significant portion of the market reflects a growing interest in forgoing traditional mortgage financing. However, the decision to pay in cash shouldn't be made lightly. There are distinct advantages to all-cash acquisitions, yet there are also critical financial and strategic factors to consider before foregoing mortgage opportunities. Advantages of Buying with Cash One clear advantage of an all-cash purchase is the leverage it may provide in a competitive real estate market. Sellers often prefer cash offers because they promise a quicker and more secure transaction without the risk of buyer financing falling through. Additionally, cash buyers avoid many of the fees associated with obtaining a mortgage, such as origination…
Read More

Mortgage Seasoning?

We know barbecue season is coming, but today we aren't talking about dry rub season, but mortgage seasoning. If you're in the market for a new home, you've probably heard about the best times to buy based on market trends. However, there's another important timing factor to consider: mortgage seasoning. This term might seem a bit technical, but it's actually pretty straightforward. Mortgage seasoning is all about how long your money needs to be in your bank account before you use it for things like your down payment and closing costs. Lenders check this to make sure the funds aren't just appearing overnight. They want to see that you’ve managed this money over a set period, which shows you’re ready to handle the financial commitment of buying a home. Mortgage…
Read More

HELOC Or Cash-Out Refi

Homeowners looking to tap into their home equity for financial flexibility or to fund large projects often look at two main options: Home Equity Lines of Credit (HELOCs) and cash-out refinances. Both of these methods offer unique advantages depending on your financial goals and the amount of equity you've built in your home. While a HELOC provides a flexible line of credit, a cash-out refinance allows you to restructure your mortgage under potentially more favorable terms while accessing a lump sum. The Flexible Nature of HELOCs A HELOC is ideal for homeowners who need access to funds over a period of time, whether for phased home improvements, education expenses, or other ongoing needs. This type of credit offers a draw period typically up to 10 years where you can borrow…
Read More

Prepay Your Mortgage?

When you secure a mortgage, it typically means committing to a long-term payment plan that can last several decades. However, it's possible to shorten this timeline by making additional payments towards your loan. Prepaying your mortgage means more than just getting ahead on payments; it fundamentally changes how quickly you can free yourself from this debt. This blog post delves into what it means to prepay your mortgage, the potential savings, and how to navigate the associated benefits and drawbacks. Understanding Mortgage Prepayment Prepayment of a mortgage involves paying extra amounts towards the loan principal beyond the regular monthly payments. By directing extra funds to the principal rather than the interest, you accelerate the loan's payoff timeline and reduce the total interest paid over the life of the loan. Calculating…
Read More

Market Watch – Rate News

This past week, national mortgage rates have shown a mixed behavior with most rates climbing. The average rates for popular loan types such as the 30-year fixed, 15-year fixed, and jumbo loans saw an uptick, while the rates for 5/1 adjustable-rate mortgages (ARM) declined. Such fluctuations are not just numbers; they directly influence potential homebuyers' decisions and the overall housing market's dynamics. As we navigate through the year, the expectation is that mortgage rates might gradually decrease, although the journey could be uneven. The trajectory of fixed mortgage rates often aligns with movements in the 10-year Treasury yield, which is sensitive to changes in investor sentiment, economic conditions, and crucial decisions made by the Federal Reserve. Recently, the Fed decided to maintain the current interest rates, focusing on controlling inflation…
Read More