Category: News

📉 Borrowing Costs on the Decline: What’s Fueling the Trend? 1. Fed Holds Steady — Markets Bet on Soon to Come Cuts • As of July 1, 2025, the Fed paused the federal funds rate at 4.25%–4.50%—the fourth consecutive hold—but shifted its dot-plot and commentary to now signal three anticipated cuts by the end of the year, rather than a single cut (investopedia.com, tradingeconomics.com). • Major Wall Street forecasters are following suit: o Goldman Sachs expects three 25 bp rate cuts (likely in Sept, Oct, Dec) (reuters.com). o Morningstar sees a cumulative 50 bp cut in 2025, with more in 2026 (morningstar.com). o Deloitte predicts the first 25 bp cut in Q4 2025 and steady easing into 2026 (deloitte.com). 2. Inflation & Labour Signals Cooling • Inflation remains stubborn—above the…

If you're planning a home upgrade—whether it's a kitchen remodel, basement conversion, or a complete overhaul—a renovation loan could help you get the job done without draining your savings. These loans come in many forms, including home equity loans, personal loans, cash-out refinancing, and government-backed renovation mortgages. The right choice depends on your current equity, credit score, and the scope of your project. Home renovation loans work by providing funds specifically for improving or repairing your home. Some allow you to roll renovation costs into your mortgage when purchasing a fixer-upper, while others give you access to equity you’ve already built in your current home. Popular options include the FHA 203(k), Fannie Mae HomeStyle, and Freddie Mac CHOICERenovation loans. For smaller or unsecured projects, personal loans may be the fastest…

Before you can shop for a home with confidence, it’s smart to get preapproved for a mortgage. Preapproval gives you a clear idea of how much a lender is likely to offer based on your financial profile. To make that determination, lenders will need to verify several aspects of your financial situation—including your income, assets, debts, and credit history. Having all your documents ready can make the process faster and smoother. One of the first things your lender will look at is your employment and income. Expect to provide pay stubs from the past 30 days, W-2s and tax returns from the last two years, and recent bank statements. If you're self-employed, you’ll need to provide additional documentation, such as business tax returns or profit and loss statements. Other sources…

Closing on a home is an exciting milestone, but it’s also a process that involves a lot of moving parts. From the time your offer is accepted to the moment you get your keys, there are several steps that must be completed by both you and your lender. While the process can take several weeks, proper preparation can help things go more smoothly and reduce the chances of delays along the way. Once you reach closing day, you’ll finalize the purchase by signing a series of documents, paying any remaining closing costs, and receiving the keys to your new home. You may be joined by your real estate agent, the seller, a closing agent, and potentially an attorney. The documents you’ll review include your closing disclosure, loan agreement, mortgage note,…

When it comes to first-time homebuying, understanding what constitutes a “typical” down payment can make the process feel a lot more attainable. In 2024, the median down payment among first-time buyers was 9 percent of the purchase price—meaning on a $400,000 home, most newcomers put down about $36,000. However, loan programs tailored for first-timers often let you start with as little as 3 percent down, and government-backed options like VA or USDA loans may even require zero down. Deciding on your down payment is all about weighing the trade-offs. A 20 percent down payment is considered ideal: it typically secures the lowest interest rates and lets you bypass private mortgage insurance (PMI) altogether. But given the median amortization patterns, very few first-timers reach that benchmark right out of the gate—only…

A 3/1 adjustable-rate mortgage (ARM) offers homebuyers a fixed interest rate for the first three years of their loan, followed by annual rate adjustments for the remaining term. During the initial three-year period, your monthly payments remain consistent, giving you the predictability of a traditional fixed-rate mortgage. After those introductory years, however, the interest rate can adjust once per year based on market indexes—such as Treasury yields or the Secured Overnight Financing Rate—plus a set margin determined by the lender. Once the three-year fixed period ends, the annual rate adjustments are governed by caps that limit how much your interest rate can increase at each adjustment and over the life of the loan. For example, an initial adjustment cap might restrict your rate from rising more than 2 percentage points…

Homeowners sometimes assume that today’s higher mortgage rates have slammed the door on refinancing, yet the truth is more nuanced. While the era of sub-3 percent loans is well behind us, national lending data show 30-year fixed rates have mostly hovered in the high-6 to low-7 percent range since 2023, with the occasional dip. If you locked in a loan closer to 8 percent during that spike—or if you have goals that go beyond trimming the rate—refinancing can still deliver meaningful value. The key is to weigh costs against long-term gains and be ready to act quickly when mini-reprieves in pricing appear. One scenario where refinancing shines is when your personal finances have improved. Say you bought with minimal cash down and a mid-600 credit score at the tail end…

A piggyback loan—often called an 80/10/10 or combination mortgage—is a clever way to buy a home with less cash up front. Instead of a single mortgage plus private mortgage insurance (PMI), you take out two loans at closing: one for 80 percent of the home’s value and a second for 10 percent. You then cover the remaining 10 percent with your own down payment. This structure lets you sidestep PMI, which can add hundreds to your monthly payment, and keeps your main mortgage under the conforming loan limit so you avoid the stricter requirements of a jumbo loan. Beyond skipping PMI and jumbo-loan hurdles, piggyback loans let you stretch your cash reserves. In a standard 80/10/10 setup, you’re only putting 10 percent down instead of 20. Some lenders even offer…

When it comes to mortgage rates, you might wonder how much influence the Federal Reserve really has. While the Fed doesn't directly set mortgage rates, its decisions significantly impact the borrowing environment for homeowners. Recently, the Fed chose to maintain its benchmark interest rate at 4.25–4.5 percent, signaling stability after several changes throughout 2024. This decision encourages lenders to keep mortgage rates relatively steady, which can offer some comfort to potential homebuyers. Mortgage rates mainly track the yield on the 10-year Treasury bond rather than the Fed's rate directly. When the Fed keeps rates unchanged, it can reassure bond markets, often leading to slightly lower Treasury yields and, consequently, more affordable mortgages. For instance, after the Fed’s recent announcement, the bond market responded positively, lowering the 10-year Treasury yield. This…

Inheriting a home with an outstanding mortgage can be a springboard to new opportunities rather than a source of anxiety. By gathering the loan statements, confirming the servicer’s details, and keeping payments current, you safeguard the property while the estate is settled and gain precious time to weigh your best options. Reviewing the loan’s balance, interest rate, and payment schedule—ideally alongside an estate-planning attorney—equips you with clarity and confidence, ensuring the process stays smooth and compliant with state-specific rules. Armed with the numbers, heirs can choose a path that turns the property into an asset. Thanks to federal protections, relatives who wish to live in—or rent out—the home can assume the loan without triggering a costly due-on-sale clause. If several heirs are involved, one party can finance a buy-out (via…