25 Oct 2024
By Aadil Nathoo

What Is A Mortgage Par Rate And How Does It Work

Mortgage Rates, ,
Think of the par rate as the raw, default rate offered by a lender. It’s not the lowest rate you can get, nor is it inflated by any adjustments. Lenders determine the par rate based on a variety of factors, such as current market conditions, your credit score, the loan type, and the loan amount. Discount Points: Lowering Your Rate When you're negotiating your mortgage, you can choose to buy "discount points" to lower the interest rate below the par rate. Each discount point typically costs 1% of the loan amount and can lower your interest rate by a fraction…
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12 Sep 2024
By Aadil Nathoo

What Borrowers Need to Know About Mortgage Rate Locks

Mortgage Rates, ,
When it comes to securing a mortgage, timing is everything—especially when it comes to locking in an interest rate. Mortgage rates can fluctuate daily, and even a small change can have a significant impact on your monthly payments and the total cost of your loan. To protect yourself from rising interest rates while you’re in the process of buying a home or refinancing, you can use a mortgage rate lock. What Is a Mortgage Rate Lock? A mortgage rate lock is an agreement between a borrower and a lender that locks in a specific interest rate on a mortgage for…
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15 Aug 2024
By Aadil Nathoo

The Impact of Inflation on Mortgage Rates and Homebuying Power

Mortgage Rates, ,
In today's economic climate, inflation has become a hot topic, especially for potential homebuyers. Understanding how inflation affects mortgage rates and your homebuying power is crucial. Let's see how it can impact your journey to homeownership. What is Inflation? First and foremost, inflation refers to the rate at which the general level of prices for goods and services rises. When inflation is high, purchasing power decreases because each unit of currency buys fewer goods and services. How Inflation Affects Mortgage Rates Inflation and mortgage rates are closely linked. Here's how: Rising Interest Rates: When inflation increases, central banks often raise…
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31 Jul 2024
By Aadil Nathoo

How to Unlock Your Home’s Equity with a Cash-Out Refinance

Mortgage Rates, ,
As a homeowner, you might be sitting on a valuable asset without even realizing it—your home equity. Tapping into this equity through a cash-out refinance can open up financial opportunities you hadn't considered. Here’s how you can unlock your home’s equity with a cash-out refinance and what you need to know before diving in. Understanding Cash-Out Refinance First and foremost, a cash-out refinance involves replacing your existing mortgage with a new one, but with a larger loan amount. The difference between your old loan and the new loan is given to you in cash. This can be a strategic way…
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26 Jul 2024
By Aadil Nathoo

What’s Changed in the Industry? The Post-COVID Mortgage Landscape

Mortgage Rates, ,
The COVID-19 pandemic reshaped many industries, and the mortgage sector was no exception. As we move further away from the pandemic, the mortgage industry continues to adapt, reflecting new economic realities, regulatory changes, and shifts in consumer behavior. For mortgage originators, understanding these changes is crucial to helping homebuyers navigate the current landscape. Here are some of the most significant transformations and what homebuyers should be aware of in the post-COVID world. Shift in Interest Rates One of the most noticeable changes has been the fluctuation in interest rates. During the pandemic, rates hit historic lows as part of an…
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