11/30/2022 0 Comments Refinance mortgage calculator![]() ![]() homeowners and mortgage holders, the total amount of tappable equity - the amount available to borrow against while still keeping 20% - rose by $1.2 trillion in the first quarter of this year alone thanks to rising home prices, according to the mortgage data and technology firm Black Knight. What About Home Equity Loans and HELOCs?Įxperts say the higher mortgage rates have led to a resurgence of home equity loans and lines of credit ( HELOCs) as homeowners who want to tap the abundance of equity in their homes want to avoid losing good interest rates on their primary mortgages. “I think home equity loans are going to be the hot topic now,” he said. With rates moving higher, homeowners might shift their attention away from refinancing as a way to get cash for home improvement projects and other expenses and toward home equity loans and home equity lines of credit ( HELOCs), Jeffrey Roach, chief economist at LPL Financial, a national broker-dealer, told us. If you’re looking for a cash-out refinance, it could make sense depending on what you plan to do with the cash and your old and new interest rates. ![]() The rise in rates means few homeowners can save money by refinancing to a mortgage with a lower rate. You can shop around and consider different changes to see if they’re still right. What Today’s Refinance Rates Means for YouĪs rates continue to rise, refinancing might still be a good option to meet your financial needs, experts say. REFINANCE MORTGAGE CALCULATOR MACThis graph, which uses data from a survey by Freddie Mac that differs slightly but generally tracks with the Bankrate survey used by NextAdvisor, illustrates how quickly mortgages have changed from their record lows of the past two years. With mortgage rates on the rise, more homeowners who would have sought a cash-out refinance are instead turning to home equity loans and lines of credit ( HELOCs) as ways to tap into their home equity for cash. This year’s run-up in mortgage rates has led to a drop in refinancing activity, according to a report from the real estate data firm ATTOM. I think the increases are also in anticipation of a continued downturn in the economy.” “The mortgage market is responding by anticipating future increases in the Fed’s funds rate. “The Fed will likely continue to move in a very aggressive way,” she says. The increase since the September meeting shows the mortgage market may be pricing in additional rate hikes in anticipation of the Fed’s November meeting, says Clare Losey, assistant research economist at the Texas Real Estate Research Center. The Fed’s meeting November meeting resulted in another hefty rate hike of 75 basis points. Rates have also gone up amid anticipation that the Federal Reserve will continue to raise its short-term interest rate to combat inflation, which it has done multiple times since March, most recently by 75 basis points in September. The consumer price index was 8.2% year-over-year in September. ![]() ![]() Pushing them up are factors like the highest inflation in 40 years. Mortgage rates are expected to move around as different factors tug at the market.
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