Author: badmortgage

Social Security, Equity, Processing Tools; Freddie and Fannie Shifts; Release From Conservatorship Slim “Rob, what do you hear about Fannie & Freddie being released from conservatorship?” Not much. Although it may change with one random tweet, the idea & process of jettisoning them is not even “on the back burner”… It may be back in the refrigerator. Maybe 2031? Both are certainly building up their net worth, but they don’t have enough capital to be released based on the amount of capital required under an Administrative Rule. The U.S. Government doesn’t want to lose control, or the income, and…

Factors influencing current mortgage ratesToday’s mortgage rates are influenced by economic and market conditions, as well as personal factors. The rate you’re quoted by a lender might be higher or lower than the national average. Here are some of the items considered when calculating your mortgage rate:10-year Treasury yield: Current mortgage rates, especially on a 30-year fixed-rate mortgage, are related to movements in the 10-year Treasury yield. Mortgage-backed securities: The rate investors earn on mortgage-backed securities also plays a role. Spreads between mortgage-backed securities and Treasury yields, as well as between what lenders offer borrowers and mortgage-backed security rates, impact current…

Things don’t always happen like you’d expect. There was some buzz yesterday in the run up to yesterday night’s Trump speech. Even during the domestic trading day, we knew the speech would offer some touting of accomplishments and a reiteration that objectives were “nearly complete.” Both of those things happened, but the speech also promised forceful escalation under certain circumstances. While that’s nothing new, it wasn’t what the market was hoping to hear last night. As a result, oil prices and bond yields spiked and stocks sold symmetrically. Bonds are juggling the dueling narratives of inflation and economic fallout–a fact…

Key insight: The proposal simplifies operational risk capital for the largest banks.Forward look: Critics warn lower capital could raise systemic risk as in prior crises.Key Quote: “The proposal really misses the mark in terms of what its original intent was.” -Phillip Basil, director at Better MarketsRegulators’ revised Basel operational risk capital framework makes it easier for the largest U.S. banks, known as Category I and II firms, to calculate how much unborrowed money they must hold to guard against losses from events like cyberattacks, fraud or compliance failures.The proposal replaces what was a more complex regime — proposed in 2023,…

The Iran war is a major factor pushing up mortgage rates. Some would-be buyers are backing off amid high costs and uncertainty stemming from the war.  The median U.S. monthly mortgage payment is $2,742, up 0.4% year over year. While that’s a small increase, it’s the first in nearly six months.  Housing payments are climbing because the Iran war and rising oil prices have pushed the weekly average mortgage rate up to a six-month high of 6.38%. Daily average mortgage rates rose as high as 6.64% at the end of last week. Home-sale prices are a factor, too; the median…

Empty-nest baby boomers own many more 3-bedroom-plus U.S. homes than younger families raising children, underscoring a mismatch between who has space and who needs it.  Millennials with kids are facing both affordability and inventory challenges–but at the same time, baby boomers have little financial incentive to move–and there’s limited inventory of reasonably priced, small, one-story homes for them to go to.  More large homes could hit the market as affordability improves, the lock-in effect eases and it becomes easier for sellers to test the market via the new Redfin-Compass partnership.  Empty-nest baby boomers own more large homes than millennials with…

Key Takeaways A home equity loan for remodeling gives you a lump sum of cash at a fixed interest rate, typically lower than personal loans or credit cards. Most lenders allow you to borrow up to 80-85% of your home’s value minus your existing mortgage balance. our home serves as collateral, which means missing payments could put your property at risk of foreclosure. Check your home equity loan eligibility. Start here A home equity loan lets you borrow a lump sum against the value you’ve built in your home, typically at a fixed interest rate lower than credit cards or…

Key Takeaways The best home equity loan rates start around 6.50% to 6.75% for borrowers with excellent credit, while average rates range from 7% to 8%, depending on the loan term and lender. Qualifying for below-average rates typically requires a credit score of 740 or higher, a combined loan-to-value under 80%, and a debt-to-income ratio below 43%. Credit unions and community banks often offer rates 0.25% to 0.50% lower than national banks, making them worth checking. Compare home equity lenders now Home equity loan rates have risen significantly in recent years. If you have a first mortgage with a 3%…

The rate on a 30-year fixed refinance rose to 6.53% today, according to the Mortgage Research Center. Rates averaged 5.55% for a 15-year financed mortgage and 6.4% for a 20-year financed mortgage.  Related: Compare Current Refinance Rates 30-Year Fixed Refinance Interest Rates Drop 0.0

As recent incidents of double-pledging risk increase outside the domestic single-family mortgage market, questions arise as to whether they could soon be a concern for home lenders in the United States.Processing ContentDouble pledging occurs when an asset such as a mortgage or auto loan gets used as collateral for more than one source of financing without full disclosure or awareness on the part of all parties involved.Most monoline mortgage businesses in the United States, which tend to be nonbanks, are unlikely to be directly affected by recent double-pledging concerns at subprime auto lender Tricolor or London’s specialist home lender Market…