It’s a traditionally slow time for the real estate market with people focusing more on family drama and last minute gift shopping than buying a new home, but there are still some trends worth watching.
1. Does the refi window close?
Probably. It’s been a busy year for cash-out refinancing, with property prices soaring and mortgage rates at record lows. Now really could be your last chance to give yourself the gift of cheap home finance as most experts predict higher interest rates in the New Year. Use your equity cheaply while you can.
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2. What’s going on with the tariffs now?
They are low but rising. That week, the average rate on a 30-year fixed-rate mortgage hit 3.24 percent. It’s still low by historical standards, but much higher than the Sub-3 courses that were available earlier this year.
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3. And where do the mortgage rates go?
High. Almost three-quarters of the experts in Bankrate’s weekly survey said they expect higher rates next week. Your predictions again underscore the importance of considering a refi if you haven’t already or you risk being left behind.
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4. Understand PMI
If you’re getting a new mortgage soon, you may need to familiarize yourself with Private Mortgage Insurance (PMI). If the balance of your mortgage is more than 80 percent of the total value of your home, most lenders require you to pay this additional fee every month until you hold at least 20 percent of the equity in the property free and unambiguously. Low down payment mortgages can help new homeowners get in the door, but these fees make monthly payments more expensive than usual.
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5. What is a bridging loan?
These products are not very common these days as most homeowners looking to move are selling their current properties for a high profit and in most cases the sale is much faster than the purchase. However, when you need to bridge a financing gap between buying a new home and leaving your old home, knowing your options is important.
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