HELOCs are revolving lines of credit, much like credit cards. You can borrow against your home equity up to a certain limit, upwards of 90% or more of your home’s appraised value, and only pay interest on the amount you use. HELOCs have variable interest rates and can be used for any purpose.

In contrast, HELOANs are lump-sum loans that you receive upfront and pay back over a fixed term with a fixed interest rate. You can borrow against your home equity, and the amount you can borrow depends on your home’s appraised value and creditworthiness. HELOANs are often used for significant expenses like home renovations or medical bills.

When considering whether to take out a HELOC or HELOAN, there are some crucial differences to keep in mind. Repayment terms for a HELOC allow you to pay back what you use and can last for 10-20 years. HELOCs often have an introductory interest-only repayment period, often 10 years (followed by a repayment period of 20 years).  On the other hand, HELOANs are paid back over a fixed term, typically 10-30 years. Interest rates for HELOCs are usually variable, while HELOANs most often have a fixed interest rate.

In terms of flexibility, HELOCs are the better option. You can borrow and repay as needed, up to the maximum credit limit, and can reuse the line of credit over time, typically for the first 10 years. This makes HELOCs ideal for homeowners with ongoing or unpredictable expenses. HELOANs may be better suited for homeowners with a specific, one-time expense in mind.

When it comes to closing costs, HELOCs usually have lower costs, as you only pay for what you borrow. HELOANs may have slightly higher closing costs as you borrow a lump sum upfront. Both options come with some risk, such as the risk of increasing interest rates with HELOCs or larger fixed monthly payments with HELOANs.

Deciding between HELOC vs HELOAN always depends on your unique financial situation and goals. If you need ongoing access to cash or have unpredictable expenses, a HELOC may be the better choice. For a specific, one-time expense, a HELOAN may be more suitable. Understanding the differences between the two can help you make an informed decision.

MasonMac loan officers have the experience to help you navigate the two options and determine which may be right for you.  Give us a call to learn more, or you can always reach out for a quick response by asking a question here.

The post HELOC vs HELOAN appeared first on Mason-McDuffie Mortgage Corporation.

Enter, MasonMac’s Lock & Shop loan program.  With our Lock & Shop product, home buyers can lock in their interest rate for an extended period of time prior to identifying a property.  This is a great benefit to buyers because they can take the time to find the right home without the pressure of a rising rate environment weighing on the decision making process.

So buyers are protected from volatile rate increased while shopping for a home, but what if rates improve while they look for a home?  Wouldn’t the locked rate then be a bad thing?  MasonMac has you covered!  Our Lock & Shop product features a 1 time float down option, so if the market improves, our customers are able to take advantage by choosing to exercise the float down option within 30 days of their settlement to take advantage of the improved market.

With the float down function, MasonMac customers get the benefit of both protection from rising rates and the ability to take advantage of an improving market, offering some peace of mind to what can be an otherwise stressful home buying process.

When considering buying a home, we think you’ll love the options we present – with long term locks, this Lock & Shop program, and our Buyer’s Advantage process, we put our customers in the best place for a stress-free house hunting and home buying process.  Add to that our highly experienced team of loan officers ready to assist with in depth product knowledge and armed with the technology to streamline the loan process, and home buyers are in the best of hands when working with the team at MasonMac!  

The post MasonMac’s Lock & Shop Loan Program appeared first on Mason-McDuffie Mortgage Corporation.

For mortgage rates

There’s a common misconception that the Fed raising rates with a Fed rate hike leads to higher mortgage rates, but it’s important to understand what drives mortgage rates.  The price of mortgage backed securities (MBS) are the only thing that directly move mortgage rates, and MBS often see an improvement (improving rates, aka bringing them down) when there’s a Fed rate hike.  Today was no exception.  The reason for this is that the Fed rate hike is a measure implemented to slow down the economy and to fight inflation.  High inflation is a major cause of increasing mortgage rates (and is one of a few reasons we’ve seen mortgage rates go up so much in 2022!), so the Fed’s actions should theoretically reduce inflation, helping mortgage bonds, and thus lowering mortgage rates.

In fact, since the Fed’s last rate hike in June, mortgage bonds have improved substantially, and mortgage rates have come down from their highs.

For other debts

Some debts are directly impacted by a Fed rate hike.  Home equity lines of credit (HELOCs), for example, are often tied to the prime rate, which moves in step with the Fed funds rate.  Because the prime rate goes up and down with each Fed rate hike, HELOC rates will move as well, and for that reason, rates on HELOCs will immediately go higher on the Fed announcement.  Other debts tied to the prime rate will do the same.  For this reason, consumers can expect their credit card payments to increase as most credit cards have their interest rates tied to prime.

For the broader economy

Fed rate hikes historically precede periods of recession.  The Fed’s action reduces inflation, but it also makes borrowing costs of financial institutions more expensive.  This tends to slow down borrowing and spending, which in turn slows down the economy.  In today’s marketplace the Fed has made it clear that fighting inflation is their #1 objecting, and the broader economy, while of concern, is being focused on less than reigning in stubborn, persistent inflation that was once thought to be “transitory”.

The Fed rate hike has many implications, but it’s very important to know that the Fed is NOT raising mortgage rates, and in fact, their actions typically lead to lower rates.  That’s important to understand today, because with mortgage rates spiking in early 2022, we’ve seen an increase in inventory on the market as many buyers have been forced to the sidelines.  Interest rates coming down could present a great opportunity for many buyers who now have less competition in the market and more inventory to choose from.  The Fed has also made it clear that their expectation is for more rate hikes throughout 2022 and beyond, so if the markets behave as expected, we may see some great opportunities with lower rates in the mortgage space in the months ahead.

The post The Latest Fed Rate Hike appeared first on Mason-McDuffie Mortgage Corporation.

What is a Trigger Lead

When your credit is pulled, the credit bureaus have a record of the credit inquiry, and unfortunately, they sell this information to bidders in the form of “leads”.  This generated “lead” is sold to lenders, letting them know you’re in the market for a mortgage.  They sell this data with complete disregard for your privacy or your desire or lackthereof to talk with any lenders or loan officers.  Seem unethical?  Trigger leads are a hot topic in the mortgage industry and are one of things most consumers don’t fully understand.  Lenders don’t have any ability to stop the data being sold, as it’s sold from the credit bureaus.  Worse, the data is often sold to numerous lenders, which results in many phone calls after credit is pulled for a mortgage.  But there are steps consumers can take to eliminate these calls, or at least slow them down.

What You Can Do 

1. Opt-Out of prescreened offers.
2. Register with the Do-Not-Call Registry, donotcall.gov.
3. Contact the Federal Trade Commission.
4. Contact Congress.
5. Stop other forms of direct marketing by visiting the Direct Mail Association’s Web site at: dmaconsumers.org/consumerassistance.html.

Since many “trigger lead” lenders are not reputable, it’s best to ignore these calls and the mail that is likely to show up in your mailbox as well, and to pay attention to the fine print – many times the mail sent is designed to look like it’s from your current lender, with only the fine print showing who the real sender is.  These mail pieces often contain “too good to be true” loan terms, and again, in the fine print you’ll usually be able to see enormous fees and other loan terms that are not borrower-friendly.

It’s important to know that your loan officer or lender doesn’t initiate these calls, and it’s not the credit pull itself that causes these calls, but the credit bureaus selling information after the credit pull and them placing you on a prescreened list.  One piece of good news to keep in mind as well is that these additional calls and mail do NOT mean your credit was run again – while a hard credit inquiry by your original lender will appear on your credit report, any other companies calling do NOT have access to your credit report or history, so the calls you’ll receive do not mean any of your personal private information was compromised.

Think this practice should be put to a stop?  You’re not alone!  Many others feel trigger leads are unethical, and the best way to change this practice is by voicing your concerns for your local congressional representatives (you can find them by calling 202-224-3121) or by contacting the FTC at ftc.gov.

The post Why Do So Many Mortgage Companies Call? appeared first on Mason-McDuffie Mortgage Corporation.

With the final quarter of 2021 under way, we expect to see a lot of forecasts and announcements around changes as we head into another new year.  Over the next month, 2022 loan limits will be announced, lenders will begin to make a final push to finalize their loans needing to close before year’s end, and planning and speculation for the new year will begin.  Much of that speculation and forecasting is already underway.

One forecast that is consistent across many economic experts is one showing home appreciation forecast to increase through 2022.  With 2021 being a tremendous year for appreciation and supply & demand metrics out of whack and heavily favoring sellers in most markets, it’s no surprise appreciation is expected to continue.  With many markets in 2021 seeing nearly 20% appreciation rates, 2022 is expected to be another big year, with forecasts coming in from Goldman Sachs with an expectation of 16% appreciation.  With the median US home price around $300,000, that would mean purchasing a home at $300k today would have a home worth $348,000 at the end of 2022!

Not all forecasts are quite as optimistic though, with Zillow’s forecast model predicting a jump of 11%, and Corelogic much lower at 2.2%.  It should be noted though, that Corelogic has pretty consistently missed the market on home value forecasts, actually forecasting a drop in home values for 2021.  A few other economic hubs have forecasts in between Zillow & Corelogic’s guesses.  Bottom line, though, is that just about everyone in economic circles believes home prices will continue to rise in the new year.

What Does This Mean For You?

If you’re a homeowner, it means you’ll enjoy a nice bump to your home equity position and have some options if you need to access home equity for things like renovations or to pay off other outstanding debt.  If you’ve recently purchased and have PMI, it may also mean you’ll have an opportunity to reduce your PMI or get rid of it altogether should your home appreciate enough!

If you’re a potential home buyer, it means that acting sooner rather than later is in your best interest.  Homes will likely be more expensive as the months go on, and with supply chain troubles still occurring, odds are that there will not be nearly enough supply of new homes coming to meet current demand.  This could mean another year of limited inventory and competitive situations, but the upside is that once you own, the appreciation begins to work for you, and no longer against you.  With rates on mortgage loans also expected to rise in 2022 (the MBA has forecast that rates will approach 4% in the new year), making a purchase with rates still near historic lows and with values where they sit currently, savings could be substantial for those who buy early in the year rather than waiting.

How We Can Help You

At MasonMac, we’ve invested in modern tools and have access to data nationwide, so we can look at data down to the zip code to provide you with solid advice and show you what home values are likely to do in a specific area.  We also have no- and low-down payment mortgage options so that even while home values climb, we can offer loan products that don’t require breaking the bank to get into a new home.  With tools like our “cost of waiting”, “buying power”, “rent V buy”, and “bid over ask” platforms, we can show you how to be a savvy buyer and structure a great offer to increase your odds of getting your home in a competitive situation.  And with full underwriting approval available before you find a home, you can rest assured you’re in the best possible position to become a home owner.

How else can we help you?  Contact us today with any questions, or if you’d like to see market data for your area (or any area in the US!) or be connected with a loan officer that can guide you down the path to home ownership.  In 2022, owning a home is forecast to be solid ground financially, and will be another year of proving that your financial security begins at home!

The post Homeowners Should Expect Appreciation in 2022 appeared first on Mason-McDuffie Mortgage Corporation.

Since the 1980s, rates in the US have consistently fallen on mortgage loans, with new all time lows regularly being established.  Refinancing can be a great financial decision, but it’s important to consider a few things before diving in so you can be prepared for the process, outcomes, and ultimately end up with a loan that offers you the most benefit possible.

1.  Act Quickly

If a refinance will benefit you financially, it’s important to act quickly.  The market moves every day, and rates change daily (sometimes multiple times during a day) so if a refinance benefits you, it’s important to act quickly on an application and locking in.  If you’re saving $500/month, it’s better to lock in that savings than trying to find another lender that can save you an additional $20/month while risking the market potentially getting worse.

2.  Understand a LOT Goes Into Your Rate

Mortgage rates vary a lot based on many factors, so don’t trust the ad, and understand that if things change on your application, the rate/product offering can vary, too.  For example, on many loans rates will be different (sometimes much different) based on just a 20 point difference in FICO score.  Different loan products (FHA vs Conventional, for example) have different rates, too.  Property type (Condo, Single Family, Manufactured/mobile) will often result in different rates, too.  Some other factors are loan amount, area, and the amount of equity you have in your property.  A good loan officer will ask the right questions up front to make sure your rate quote is accurate, but understand there are a lot of things that influence rates beyond what you see in the ads!

3.  You Can’t Catch the Bottom (Without Some Luck)

When rates fall, there are many factors that influence the rates a lender can offer.  One of those factors is capacity, or the number of loan applications a lender can handle and process at one time.  When rates fall and application volume increases, it can lead to longer rate lock periods, which cost more.  Additional staffing needs and system strains can also cause the margin lenders need to maintain on loans to increase to cover additional overhead, resulting in artificially higher rates.  The borrowers who catch the absolute lowest rate tend to be lucky and beat the crowd when applying.  After all, we don’t ever know when rates were the lowest until they’ve already moved up.

4.  Consider Your Benefits

There is really no magic rule when it comes to refinancing.  Some loans, like a VA IRRRL, require very specific changes to an existing loan, and all refinances should have a tangible benefit to a borrower – but for some people, $100/month savings is huge.  For others, taking cash out or reducing a loan term are where they find value.  Each situation is unique, but what’s consistent is that every refinance loan should be worth the cost.  Consider closing costs, and determine if the benefits of the refinance make sense for you.  One general rule is that a refinance is worthwhile if the monthly savings quickly offset your closing costs.

5.  Life Doesn’t Happen in 30 Year Increments

Just because you’re considering a 30 year mortgage, it doesn’t necessarily mean you should think about “all that interest you’ll save over 30 years”.  Odds are, you won’t have your loan even close to that long!  In 2018, the median duration of homeownership in the US was 13 years (according to NAR), and on top of that, many people have multiple loans while in a home.  The life cycle for many home buyers and homeowners often includes rate/term refinances to reduce monthly payments, cash out loans to use home equity, or term reduction loans to shave interest off the mortgage, so it’s not uncommon for people to have a new mortgage every few years as markets change and life events occur.  For these reasons, looking at “savings over 30 years” is going to offer a poor vantage point for most people, and an unrealistic picture.  Instead, focus on shorter term (3-5 years) benefits, BUT:

6.  Focus on Long Term Security

Always play it safe when it comes to a mortgage.  In most cases, it’s not just finances, it’s your home, so be smart when it comes to analyzing savings, rate, etc.  For example, if you’re in your forever home and don’t have much equity, a short term ARM loan may not be the greatest product for you.  If you can see yourself in your home for 3-5 years, a 7-year or 10-year ARM may make sense.  If you’re unsure but could potentially be in your home longer, a fixed rate loan may be a better option for you even if the payment and rate are higher than other products available.

7.  Work With a Savvy Advisor

Any lender can quote rates, drop ads in your mailbox, or advertise online.  You’ll end up in the best position if you work with someone you can trust.  Get referrals, and make sure your loan advisor can walk you through cost-benefit analysis, talk you through various options, and asks you questions to help determine which product is right for you.  The lowest rate isn’t always the best option, and when restructuring what is often the largest and most complicated debt you’ll have, it makes sense to get it right every time.  Closing costs for a mortgage are often in the thousands of dollars (for all loans – those ‘no closing cost loans’ have costs too, they’re just built into the rate), so it can be extremely costly to get the wrong loan.

8.  Find a Company with a Good Track Record

If you don’t have a loan officer you love and haven’t gotten a strong referral, work with a reputable lender that has a lot of great online reviews.   See what other customers are saying, check how long the company has been around (avoid “pop up” refi companies that pop up during periods of falling rates), and make sure they have a good track record.  If a company has only a handful of reviews or is difficult to find online, you’re likely rolling the dice.

Want to see how a refinance could benefit you, or what options you have?  Check out our refinance advisor and one of our experts can get you information on what could work best for you!

The post 8 Things to Consider When Refinancing appeared first on Mason-McDuffie Mortgage Corporation.

When applying for debt, a lot of weight is put on credit scoring. The difference between ultra competitive rates, terms, and lenders practically begging for your business and seeing terms that come with astronomical rates and costs can sometimes be just a few points in credit scoring. Most people know that paying bills on time is key to having great credit, but many people fail to realize there are other aspects of managing credit that have a major impact as well. And while paying bills on time is the MOST important thing you can do to ensure you have a good credit score, knowing ALL of the other things you can do to improve your scores can collectively have a similar impact, for better or worse.

Some major credit events like Bankruptcies, foreclosures, or repossessions, can hang around on a credit report and negatively impact scores for a long time. Some other things the credit bureaus view as negatives, though, can be quick fixes that can substantially increase credit scores, and fast! If you’ll soon be applying for credit, these are some things to consider taking action on before you apply to make sure you maximize your chances to get the best rates and loan terms.

Paying Down Your Debt (not paying off!)

One thing credit bureaus take into consideration in a big way when determining your credit score is the amount of debt you’re using compared to the amount of credit you have available. This is called your credit utilization ratio, and it plays a big role in your credit scores. Scores are impacted by both individual accounts, AND your entire credit profile. For example, if you have a $1000 credit limit on a credit card with a $900 balance, that would be a 90% ratio. If you have 2 cards, one with a $1000 limit and $700 balance, and another with a $2000 limit and a $1500 balance, that would be a total 73% ratio (all limits divided by all balances). To maximize your credit scores, you should aim to use less than 25% of all the credit extended to you. So if you have a card with $1000 as a limit, don’t exceed $250 as a balance. The good news though, is that if you pay down a card that is close to maxed out, the positive impact on your credit scores happens quickly, as soon as the updated balance is reported to the credit bureaus!

Because the credit bureaus look at individual accounts AND your collective credit, if you have a lot of cards that are maxed out, it may help your scores more to pay MOST of the balances on many cards instead of ALL the balances on a few cards. And always ask a credit expert before you pay off a card – having low balances is good, but paying off and closing your cards can actually have a negative impact on your scores. Banks want to know you can responsibly use your credit, so keeping small balances and paying them down or off regularly will maximize your scores.

Make a phone call!

These days, you may not even need to make a call! Most creditors (for credit cards) have the option to request credit line increases. In some cases, small line increases don’t even require a credit pull – so you can avoid an inquiry, and get your available credit increased. Why would you do this? Because the ratios noted above work in your favor when you pay down debt, but they are really looking at the % of debt you’re using. So if you have a $1000 credit limit card that is maxed out with a $1000 balance – you could pay it down to $500 to get to a 50% credit utilization ratio, OR, you could request a credit line increase to $2000, which would also get you to that same 50% ratio, without you spending a dime.

This is an affordable way to almost instantly boost credit scores. Keep in mind though, this works best if you already have good to excellent credit, because lenders often require a good credit history to grant increases to your credit lines.

Dispute & Delete

According to CNBC, 34% of Americans have found at least one error on their credit report. Credit bureaus are charged with making corrections and providing accurate data, but they can only work off of the data they receive. We recommend looking at your credit annually to check for mistakes. If there’s anything negative on your credit that doesn’t belong to you, you can dispute it and request the credit bureaus delete it. This can happen for many reasons, but regardless of why there is incorrect info on your report, it’s important to fix it, and once updated, your scores should improve accordingly!

The post 3 Tips to Increase Credit Scores FAST appeared first on Mason-McDuffie Mortgage Corporation.

While as a mortgage company we certainly have skin in the game when it comes to refinancing, transparency is also the name of our game, and we want you to know the truth to the question “is it smart to refinance my home?”.  And that truth is, it depends.  First, what is a refinance?  Refinancing is the restructuring of your mortgage loan, paying off the old loan and replacing it with a new loan under different terms.  You can refinance simply to reduce your interest rates, or you can refinance to access the equity you’ve built up in your home.  Many people do this to receive cash from their equity to pay off debts, perform home fixes or renovations, or to use the cash for some other purpose.

But is it smart to refinance your home?  It’s important to keep in mind that while owning a home is one of the best ways to accrue wealth in many areas of the country, it’s reckless when it comes to your finances to use your home as a piggy bank.  Thinking of refinancing to pay for a quick vacation on a whim?  To purchase that new toy that you’ll tire of in a few months?  Because you’ve got a super huge crush on your loan officer and want an excuse to keep in contact with them over 2-3 weeks?  These are all pretty terrible reasons to refinance (though your loan officer is very flattered by reason #3), and in these cases, we’d advise that no, it is not smart to refinance your home.

Is it smart to refinance your home? As with most things mortgage-related, it depends on your individual scenario.

There are, however, many reasons where refinancing is a good idea.  Restructuring a mortgage to a lower rate can add a ton of cash flow and make things less tight around the house – so as long as the monthly savings offsets any closing costs, a rate reduction refinance (known in the industry as a rate/term refi) is usually a good idea – but keep in mind, the savings has to make sense when you factor in any costs.  Speaking of rate/term refinancing, changing a loan term is also a popular and oftentimes good reason to refinance.  If a current 15 year loan isn’t working because the payment is uncomfortably high, switching to a 30 year term could help.  A 30 year term with no prepayment penalties also gives borrowers more flexibility month over month (for example, if you WANT to pay your loan off in 15 years, you can  by making larger monthly payments – but if you want to put that money elsewhere, the lower 30 year payment gives you that option).  Has your income increased to a point where you can afford spending extra each month?  Maybe moving to a lower rate 15 year term would save you a TON of interest over the long haul, something many home owners take advantage of when planning toward a mortgage-free retirement.

Where things get a little more complex is when cash out, or removing equity from your home, is involved.  Adding to your loan balance at the expense of equity in your home can be extremely beneficial to a home owner, or financially disastrous, so the big thing to consider is “is the money worth it”.  For example, taking $30,000 cash out of your home equity to do upgrades or renovations could both add to your home value and make your life more comfortable – so it might be worth the additional monthly cost.  Taking out equity to pay off other debts is also a common reason to refinance, and also can be great for some people and a terrible idea for others.  For example, if you pay off a bunch of credit cards, take out equity to pay them off, then run them up again, you’re setting yourself up for financial ruin and a deep hole to climb out of.  But if you pay off higher rate debt that’s difficult to pay off with your monthly budget, and then invest the monthly savings back into your mortgage or other smarter financial plans, it can be a great decision.  For some folks, just the increase in monthly cash flow from getting rid of shorter-term, higher rate debt can be a life changing move.  But it’s important to remember it DOES come at the expense of your home equity.  That money might seem free, but it’s not!

Bottom line, the answer to the question “is it smart to refinance your home” is different for everyone.  A good loan officer will guide you through your options and discuss the benefits and pitfalls of what different loan programs would look like.  Refinancing your home is a pretty easy process, and can offer tremendous benefits, but it’s best to move forward with discretion and a complete understanding of what it means for your financial plans.

The post Is It Smart to Refinance Your Home? appeared first on Mason-McDuffie Mortgage Corporation.

On hand were MGIC, a mortgage insurance company that assists in helping clients obtain the dream of home ownership with less than a 20% down payment, Edward Jones Financial Planners from a local office, along with local reps from Usher Insurance in Richmond, VA.

River City Roll hosted Mason-McDuffie Mortgage’s Virginia team for their client appreciation party

River City Roll was a tremendous host and offered an outstanding selection of drinks along with delicious food that went above and beyond standard bowling alley fare.  To make the event even more fun there were raffled prizes including various gift bags along with a Ring home security camera for one lucky winner.

The RVA team had a great time showing appreciation for the clients and friends that trust them and MasonMac to help with their home buying and home ownership needs, and it was great to hear from the many happy clients in attendance.  An extra thanks is in order for River City Roll for being such fantastic hosts – if you’re in the RVA area and looking for a fun, family-friendly (up til 7pm when it becomes 21+) venue, we highly recommend checking them out!  And of course, if you need help with home loan, our Virginia mortgage team is your best choice in the RVA area and beyond!

The post Richmond Virginia Mortgage Client Appreciation Party appeared first on Mason-McDuffie Mortgage Corporation.

The Fed rate cut is a small piece of the big economic picture, but it does NOT have an immediate impact on mortgage rates as many people believe

Well, the Fed funds rate is the rate banks borrow from each other.  When the rate is cut, it is done to help stimulate the economy and increase inflation.  The Fed funds rate is NOT directly tied to mortgage rates or most other fixed rate loan instruments.  What IS directly tied to the Fed funds rate is the prime rate (the rate credit card variations are based on), so you may see rates on credit cards and other similar debt move in correlation with the Fed funds rate, but mortgage rates don’t move based on what the Fed does.

In fact, the market has already absorbed the forecast for a rate cut into current conditions – mortgage bond traders (and traders in every other market) forecast cuts or increases to rates well in advance of the actual decision/announcement day by the Fed.  The only time the Fed announcement has a large impact is when their decision differs from what the markets expected (for example, if the market expects a .25 CUT and the Fed announces a .25 INCREASE, you can bet there’d be some immediate market craziness).   So rates today won’t move as the Fed delivered exactly what the market was expecting.

But what about the bigger picture?  Long term, Fed rate cuts are indicative of an economy that needs a boost.  In a recessionary environment, inflation is generally low, and this is a positive for the bond market.  Because of this, when the Fed cuts rates, it’s usually a signal that mortgage rates are in a downward trend, but the rates don’t move down because of the Fed rate cut.  And the impact is certainly not immediate.

So if you’re locked into a mortgage loan today, your rate hasn’t changed for the product or loan program you’re applying for.  In today’s market, your timing is quite good – rates are near their historic low, and while there may be an opportunity to obtain a lower rate down the line (the changes to rates based on economic conditions generally move over weeks and months, not days), today’s rates are amazingly low when looking at the history of mortgage debt.

The post What the Fed Rate Cut Means to You appeared first on Mason-McDuffie Mortgage Corporation.