Given inflation and mortgage rates have gone up aggressively since August 2020, was getting an ARM back then a bad move? Maybe. But I’ll argue probably not. Let me reason why. One of the best things about running Financial Samurai is having readers criticize my financial beliefs and actions. So long as the criticism is […]
Was Getting An ARM Before Inflation And Rates Went Up A Bad Move? Read More »
Paying off a mortgage with a negative real interest rate is a suboptimal financial move. However, that’s exactly what I did in this unusually high inflationary environment. Bad move? Maybe. My mortgage rate was a 30-year fixed at 4.25% and the latest inflation figure was 9.1%. Therefore, it had a negative real mortgage rate of
Why Pay Off A Negative Real Mortgage Rate When Inflation Is So High Read More »
Imagine getting a $55,077 mortgage credit rather than paying a mortgage fee to get a new loan. A $55,077 mortgage credit was what I was quoted for a $4.125 million, 10/6 ARM at a 3.625% rate. Surely receiving a large credit is better than paying a mortgage fee right? Not necessarily. The higher the mortgage
Why It’s Better To Pay A Small Mortgage Fee Than Get A Large Credit Read More »
House prices have cooled and will likely decline in some of the hottest markets. However, on my quest to get financing to conquer my real estate FOMO, I realized a positive datapoint for the U.S. housing market. Well-qualified borrowers are paying much lower mortgage rates than the headline rates you see in the news. There
Well-Qualified Borrowers Are Paying Much Lower Mortgage Rates Read More »
Let’s take a look at the latest mortgages by interest rate. By understanding the composition of mortgages, we’re better able to understand how a rise in interest rates will affect the housing market and the consumer. Since November 2018, the vast majority of homeowners with a mortgage have refinanced and taken advantage of lower rates.
Mortgages By Interest Rate: Homeowner Tenure To Increase Read More »
This post will show you how to reduce mortgage fees and get the best rate possible. I have been refinancing and taking out new mortgages since 2003. As a result, I’ve become an expert at squeezing as much value as possible out of every mortgage. Mortgage fees are an inevitability. How do you expect anybody
How To Reduce Mortgage Fees And Get The Best Rate Possible Read More »
Have you ever wondered what the difference is between a 5/1 ARM and a 5/5 ARM or a 7/1 ARM and a 7/6 ARM and so forth? Let me explain in this article because the difference adds to another dilemma mortgage borrowers should consider. An adjustable-rate mortgage (ARM) is a home loan with an introductory
The Difference Between A 5/1 ARM And 5/5 ARM And When To Get Either Read More »
Since 2009, I have encouraged Financial Samurai readers to take out an adjustable-rate mortgage instead of a 30-year fixed-rate mortgage. The rationale was that we were in a downward interest rate channel, so why pay more in interest if you don’t have to? Further, the average homeownership tenure back in 2009 was only around 5-7
Adjustable-Rate Mortgages As A Percentage Of Total Loans: So Low! Read More »
Even though a no-cost refinance sounds great, there’s really no free lunch. A no-cost refinance has costs. The costs are just not visible upon closing. The refinance costs are baked in by charging the borrower a higher mortgage rate. Here are all the mortgage fees in a no-cost refinance. It’s like marrying someone for their
No-Cost Refinance Loan: There’s Really No Such Thing Read More »
You may want to pay down extra principal to qualify for a mortgage refinance. When mortgage rates are low, paying down principal to qualify for a lower mortgage rate is a smart move. The return on your capital could actually be quite high. But when mortgages are high, as they still are today, they paying
Should I Pay Down Extra Principal To Qualify For A Mortgage Refinance? Read More »
