Author: badmortgage

There were mixed blessings in the mortgage rate world today. The bad news is that today’s rates are just a bit higher than yesterday’s, resulting in another 8 month high. The good news is that things were looking quite a bit worse earlier in the morning. Mortgage lenders prefer to set rates once per day even though those rates are dictated by movement in the underlying bond market. If bonds move enough, lenders will change rates mid-day. Today was one of those days and, fortunately, the change was in a friendly direction.  Before the improvement, the average lender’s top tier…

Mortgage application activity declined for the second consecutive week as rising interest rates continued to weigh on demand. The Mortgage Bankers Association (MBA) reported a decrease of 10.5% on a seasonally adjusted basis for the week ending March 20. Both major components moved lower. The Refinance Index fell 15% from the previous week, though it remained 52% higher than the same week one year ago.  Purchase activity also softened, with the seasonally adjusted Purchase Index declining 5% and running 5% above year-ago levels. According to MBA’s Joel Kan, persistently elevated Treasury yields—driven in part by higher oil prices and inflation…

Key Takeaways A HECM allows homeowners 62 and older to fund solar panels and heat pumps without adding monthly mortgage payments, making it a practical option for seniors on fixed incomes. The 30% federal Residential Clean Energy Credit still applies to HECM-funded solar projects in 2026, potentially saving you thousands on qualifying installations. Improving your home’s energy efficiency before installing solar can significantly decrease both the required system size and the amount you need to borrow. See if you qualify for a reverse mortgage. Start here Rising utility costs can be especially challenging for those on fixed incomes. Homeowners aged…

Key Takeaways HEA maturity means you owe one large lump-sum payment based on your home’s value at the time. A forced sale can happen, but you may be able to buy out the HEA or refinance instead. Planning ahead helps you avoid surprises and keep control over your options. See if a home equity investment fits your situation Home equity agreements (HEAs) allow homeowners to access a lump-sum of cash in exchange for a share of the home’s future value. An alternative to home equity loans and HELOCs, HEAs can provide money for home renovations, debt consolidation, or other needs.…

Key Takeaways Reverse mortgages offer flexible access to equity over time, while HEIs provide a one-time lump sum. Reverse mortgages accrue interest and fees, but HEIs cost depends on how much your home appreciates. The better option depends on your age, timeline, and need for flexibility. See if a home equity investment fits your situation Homeowners with significant equity often look for ways to turn that value into cash without taking on a traditional home equity loan or HELOC. Two alternatives you may encounter are reverse mortgages and home equity investments (HEIs). At first glance, they can seem similar. Both…

Markets were presented with an opportunity just before the close yesterday to put their faith in another ceasefire-style announcement, but have instead opted to stick with prevailing momentum (lower stocks, higher yields and oil prices). Part of the reason is that rather than a true ceasefire, the announcement merely delayed a major escalation from this weekend by 10 days. In addition other escalations continue to add up based on overnight reports. Bonds (and stocks and oil) are now in a pattern of fading (a trading term akin to “calling the bluff of”) ostensibly hopeful de-escalation developments until they see something real…

Key insight: Fed Gov. Lisa Cook, Gov. Michael Barr and Vice Chair Philip Jefferson said in separate appearances Thursday that uncertainty over tariffs and geopolitical tensions is shifting the balance of risks toward combating a rise in inflation.Expert quote: “The ongoing trade policy uncertainty and geopolitical tensions … pose upside risk to my inflation forecast.” — Fed Vice Chair Philip Jefferson.Look ahead: The officials’ views come as the Organization for Economically Developed Countries Thursday raised its forecast for inflation in 2026 and as economists are scaling back expectations for rate cuts in 2026.Three members of the Federal Reserve’s rate-setting committee…

Key Takeaways You can use reverse mortgage proceeds to pay off a federal tax lien, but the lien typically needs to be resolved at or before closing. HUD permits HECM approval if you have an active IRS repayment plan with at least three consecutive on-time payments or if the IRS agrees to subordinate the lien. Paying off a tax lien at closing reduces your available loan proceeds, so calculating your net funds beforehand is essential. See if you qualify for a reverse mortgage. Start here A federal tax lien does not necessarily prevent you from obtaining a reverse mortgage. You…

Key Takeaways With most Americans not eligible for Medicare until age 65, a Home Equity Conversion Mortgage (HECM) can help cover the healthcare gap until you qualify. You can choose from payout options that include a lump sum, monthly payouts, a line of credit or a hybrid payout. An HECM may be helpful if you have sufficient equity, will live in the home for more than five years and want the protection of FHA insurance. See if you qualify for a reverse mortgage. Start here Today, over 60% of retirees name healthcare costs as their top financial concern1. Medicare can…

The Trump administration has promised to keep Fannie Mae and Freddie Mac’s implicit government guarantee in any immediate plans for them, but not everyone agrees it should be taken for granted.Processing ContentA panel of government-sponsored enterprise reform veterans who saw Fannie and Freddie go into conservatorship back in 2008 reminded attendees of this at an American Enterprise Institute panel discussion on the GSEs’ future this week.”When you’re running the market on a free government guarantee you’re distorting the market,” Alex Pollock, senior fellow at the Mises Institute, said at the AEI’s panel discussion. Pollock also formerly was CEO of Federal…