Author: super_admin

The dream of owning a home is a cherished one for many individuals and families across the United States. However, the soaring median existing-home price of around $400,000 can often make it seem like an unattainable goal, especially when faced with the prospect of a substantial down payment. Traditional mortgage loans typically require a 20 percent down payment, equating to a significant sum, but there is good news – down payment assistance (DPA) programs exist to help prospective homeowners bridge the financial gap. In this blog post, we will explore what DPA programs are, how they work, and the steps to access this valuable assistance. What is a Down Payment Assistance (DPA) Program? Down payment assistance programs are financial tools designed to provide aspiring homebuyers with the necessary funds to…

The news from the Federal Reserve this week is a pause on rate hikes and while the Fed does not set these rates outright, its monetary policies and decisions inevitably echo through the housing market. This relationship has been notably evident through the 11 rate hikes since early 2022, leading to the Fed’s recent announcement of a pause in September. A Glimmer of Hope for the Housing Market Housing economists have found solace in this pause, with anticipations that the steep incline in mortgage rates may be nearing its terminus. Mike Fratantoni, the Chief Economist at the Mortgage Bankers Association, states, “We anticipate a continual decline in inflation, aligning it closer to the Fed’s target. Concurrently, the job market is projected to decelerate, reflecting expectations that the Fed’s 2024 movements…

What's a 10/1 ARM? An ARM is a mortgage with an interest rate that can adjust over time in response to changes in the market. The 10/1 ARM has a fixed interest rate for the first decade, followed by annual rate adjustments for the next 20 years. This makes it distinct from traditional fixed-rate mortgages which lock in one rate for the entirety of the loan term. The beauty of the 10/1 ARM lies in the balance it offers: the certainty of a fixed rate for a substantial period and the potential savings from rate adjustments thereafter. How the 10/1 ARM Rate Works: Essentially, the interest rate on a 10/1 ARM is determined by a combination of a fixed margin rate and a variable index rate. The index rate reflects…