Are reverse mortgages puzzling you? With so much conflicting information available, it can be a challenge to understand them thoroughly. This post aims to demystify reverse mortgages by presenting ten essential facts, offering balanced insights whether you’re considering one or exploring other options. Reverse Mortgages Use Your Home’s Equity Reverse mortgages allow homeowners to borrow…

Interest rate cuts expected by the end of 2024, affecting homebuying decisions.Even small rate cuts could bring millions of buyers back into the housing market.

Brief window for refinance boom expected following the rate change, expert says. In a significant shift from its previous monetary policy stance, the Federal Reserve announced Wednesday that it would lower its fund rate by 50 basis points to a range of 4.75% to 5%.   The move comes as concerns grow over slowing economic…

The Federal Reserve doesn’t set mortgage rates outright. But its decisions in setting interest rates do play a role in the percentages lenders offer would-be homeowners. And even if the Fed keeps things unchanged, mortgage rates can still fluctuate. So, overall, how do the Fed’s monetary-policy moves affect mortgages — and influence the cost of…

We publish daily coverage of mortgage rate movement and have done so for nearly 20 years now.  It’s a great place to quickly check in on rate trends and to get a sense of what’s true and what matters.  If you’d been checking in at any point in the past few days/weeks, you likely saw…

The Federal Reserve took the widely expected step Wednesday of announcing its first interest rate cut in years, a move that will have a major impact on the finances of Americans across the board, making borrowing cheaper, though the golden days of high-yield savings instruments may be over. Key Facts The Fed’s policy-setting committee cut the federal funds rate…

Key Points The Federal Open Market Committee chose to lower its key overnight borrowing rate by a half percentage point, or 50 basis points, amid signs that inflation was moderating and the labor market was weakening. It was the first interest rate cut since the early days of the Covid pandemic. Outside of the emergency…

A Debt Service Coverage Ratio (DSCR) loan is a type of financing where the borrower’s ability to service debt is primarily assessed by their DSCR. The DSCR is a financial metric that measures a borrower’s ability to generate enough cash flow to cover their debt obligations. It’s calculated as: Net Operating Income (NOI): This is…

Deducting mortgage interest paid on tax returns is now a meaningful option for many borrowers. High mortgage rates in recent years have pushed many prospective homebuyers to the sidelines and seen others abandon their purchasing plans – but for those would-be buyers caught in two minds about taking the plunge, there’s at least a potential…