Secondary Mortgage Market: What it is and how it Works Key takeaways: Investors purchase and sell mortgage-backed securities, or bundled packages of numerous individual loans, on the secondary mortgage market, a financial marketplace. Although you, as the buyer, are not directly involved in it, the secondary market affects the cost and availability of mortgages. You … Read more
HomeReady Mortgage Guide Key Takeaways: A conventional HomeReady mortgage type only requires a 3% down payment. It can be used to refinance an existing mortgage or to purchase a house. To be eligible, your income must be at most 80% of the local median income. The 3% down payment requirement can be satisfied with grants, … Read more
What is the impact of the Federal Reserve on mortgages? Although it doesn’t directly set mortgage rates, the Federal Reserve’s actions influence how they change. At its most recent meeting on January 31, the Fed declared a prolonged pause following eleven rate hikes from early 2022 to mid-2023. Even if the Fed maintains its key … Read more
What is a Mortgage? A Definitive Guide for Aspiring Homeowners Key takeaways: A mortgage is a long-term loan from a bank that enables you to buy a house by using the house as collateral. Principal (the amount borrowed), interest, property taxes, and homeowners insurance are usually included in mortgage payments. They may also consist of … Read more