Match the payoff to retirement goals: Let's say a borrower is in their late 30s or 40s and their retirement plan is to retire in their 60s. Applying for a 30-year mortgage would push their potential payoff of their house into their 70s. Choosing a 20-year mortgage would keep them potentially on track for having their house paid off in their 60s. … [Read more...] about How a 20-year home mortgage can save you a ton of money
20 year mortgage refinance rates
The 15-year fixed-rate average remained the same as last week, holding steady at 4.07 percent with an average 0.4 point. It was 3.38 percent a year ago. The five-year adjustable rate average dropped to 3.98 percent with an average 0.3 point. It was 4.04 percent a week ago and 3.39 percent a year ago. This is the first time since late September that the rate for the 5-year ARM is below 4 percent. … [Read more...] about Mortgage rates continue their slide, while the Fed raises its benchmark rate
"Mortgage rates were largely flat for the week but have started to fall after blockbuster announcements from central banks on each side of the Atlantic," said Matthew Speakman, a Zillow economist. "Markets hotly anticipated this week's meeting of the [Federal Reserve], but it was the European Central Bank that first jolted rates from their generally sideways movement this week. On Tuesday, ECB President Mario Draghi suggested that more stimulus was likely in the coming months, in comments that sent bond yields sharply downward. Fed Chairman Jerome Powell followed suit on Wednesday, holding the federal funds rate steady but suggesting that the Fed would be open to cutting rates in the coming months should the current economic outlook fail to improve. Bond yields fell sharply again, hitting their lowest levels since the 2016 election day. Mortgage rates are likely to follow in tow for the short term, although it's unclear how long these low rates will last." … [Read more...] about Mortgage rates poised to drop after Federal Reserve announcement
Those who want to reduce their terms and go from a 30-year fixed-rate mortgage to a 15-year loan, might be able to ax an additional 0.5 percent from the top since since 15-year loans usually have lower rates. That might also mean larger monthly payments, but overall less interest paid over the life of the loan. Adjustable-rate mortgage holders can also profit from dropping rates; the timing might be right to lock via a fixed-rate mortgage as rates continue to hover around the 4-percent mark. … [Read more...] about As mortgage rates plunge, should you refinance?
"Mortgage applications decreased for the second consecutive week, but low rates continue to drive activity to much higher levels than earlier this year and last summer," said Bob Broeksmit, MBA president and CEO. "MBA is forecasting for mortgage rates to remain at around 4% through the rest of the year, which is good news for both homeowners looking to refinance and prospective buyers." … [Read more...] about Mortgage rates hold steady despite sinking bond yields