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Graduate school can be expensive. On top of tuition, you typically need to cover the cost of books and living expenses. At the same time, you may be juggling undergrad student debt.

One way to ease costs is to get a graduate assistantship. If you’re not familiar with the concept, a graduate assistantship is a salaried employment opportunity for graduate students. Graduate assistants work a set number of hours per week and, in return, receive a tuition waiver and/or a monthly living stipend.

Securing a graduate assistantship can buoy finances and boost connections. Read on to learn how graduate assistantships work and how to find one.

What Is a Graduate Assistant?

Graduate assistants are students enrolled in graduate or professional schools who assist departments or professors in a teaching, research, or administrative capacity. A graduate assistant might be paired with a professor who is actively engaged in research or work that might complement their career goals or current focus.

Graduate assistantships often benefit both the university and the student. The university is able to fill positions that might be more costly if filled by a traditional employee. The student typically receives a tuition waiver, monthly stipend, and/or a fixed sum of money to help them pay for graduate school. Some programs may also offer class credit for these jobs.
💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.

Things to Consider

Overall, graduate assistant programs are meant to offer value to potential students, and to defray at least a portion of the costs associated with pursuing a graduate degree.

When combined with scholarships, grants, and other financial awards, becoming a graduate assistant can make the costs of grad school more manageable. Some schools also offer tuition waivers — for some or all of the tuition — for qualifying graduate assistants.

Compensation packages vary depending on the school but tuition waivers are more commonly offered to graduate assistants who are employed by the school already, have financial or other hardships, or are veterans (or the spouse or dependent of a veteran).

Graduate assistantships that offer tuition waivers are often competitive, so it can be a good idea to explore the assistantship options offered by your college or department and apply as early as possible.

Another thing to keep in mind: A stipend typically counts as taxable income, though it isn’t considered wages (which means you won’t pay Medicare or Social Security taxes on it). So while assistantships do bring in some extra money, Uncle Sam will collect a portion of it.

As for tuition waivers, graduate assistants can exclude up to $5,250 worth of educational assistance benefits from their income each year, according to the IRS.

Also keep in mind that many universities prefer it if graduate assistants don’t seek additional, outside employment. It’s a common policy intended to protect a graduate student’s limited bandwidth — being a full-time student with an assistantship can feel like having two full-time jobs. Adding an additional part-time job on top of that could become too much of a strain.

Recommended: Finding & Applying to Scholarships for Grad School

Tips on How to Become a Graduate Assistant

How you go about becoming a graduate assistant will depend on the program and school. Acceptance letters often include at least some initial information pointing students toward any financial aid or assistantship the program might be offering.

You can also explore graduate assistantship opportunities by looking at the school’s or department’s website, as well as websites of professors. In addition, you can check the school’s job boards and social media sites, and even just do an online search using the name of your intended school and the phrase “graduate assistant.”

What if You Need More Funding?

Stipends and/or tuition waivers that come with graduate assistantships can make graduate school more affordable. However, if you still have gaps in funding, you may want to explore scholarships, grants, and federal or private student loans.

Graduate and professional students can apply for federal Direct PLUS Loans. Eligibility is not based on financial need, but a credit check is required.

Graduate and professional students may also apply for Direct Unsubsidized Loans; again, eligibility is not based on financial need.

To apply for federal loans for graduate school, you simply need to complete the Free Application for Federal Student Aid, or FAFSA.

Because graduate students face some of the highest federal student loan interest rates, and loan origination fees, you may also want to look into private graduate school loans and compare offers. Just keep in mind that private student loans don’t come with same protections, such as forbearance and forgiveness programs, offered by federal student loans.
💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate.

The Takeaway

Getting a graduate assistantship position can help cover the often high-cost of graduate school. These positions can involve being a teaching, administrative, or research assistant. Compensation may be in the form of a monthly stipend and/or a tuition waiver.

If you aren’t able to get a graduate assistantship, or you have secured one but it isn’t enough to fully cover your costs, you may want to look into other sources of graduate school funding, including private grants and scholarships and federal or private student loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Source: sofi.com

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For many individuals and families, owning a home is a lifelong dream. However, with rising real estate prices, some may find themselves seeking financing beyond the conforming loan limit. This is where jumbo loans come into play. So whether you’re looking to buy a home in Omaha or a home in Lincoln, let’s break down what a jumbo loan is in Nebraska, the 2023 conforming loan limit, and what’s needed to qualify for this type of loan.

What is a jumbo loan?

A jumbo loan in Nebraska is a type of mortgage that enables homebuyers to borrow more than the limits set by the Federal Housing Finance Agency (FHFA) for conforming loans. The conforming loan limit (CLL) is the maximum amount of money that a lender will provide to borrowers at a specific interest rate and is established each year. Jumbo loans are necessary for homebuyers who want to purchase a high-value property, such as a luxury home, that exceeds the conforming loan limit. 

If you need to borrow more than the conforming loan limit, you’ll need a jumbo loan. Nebraska jumbo loans allow you to borrow more money to buy a more expensive home, but they also come with higher interest rates and stricter requirements than conventional loans.

What is the jumbo loan limit in Nebraska?

In Nebraska, the conforming loan limit is $726,200 across all counties. For example, if you’re buying a home in Douglas County, where the median sale price is $309,000, a loan limit exceeding $726,200 would be considered a jumbo mortgage.

As a reminder, the loan amount is what determines whether or not you’ll need a jumbo loan, not the home price. So, if you were to put $100,000 down on a $780,000 home in Omaha, the loan would be $680,000, which is under the conforming loan limit for this area. In this case, your loan wouldn’t be considered a jumbo loan.

This FHFA map will give you more specific information related to the conforming loan limits in your county. 

What are the requirements for a jumbo loan in Nebraska?

As previously mentioned, the requirements for a jumbo loan are much more stringent than a conforming loan. The specific requirements can vary from lender to lender, but below are the typical requirements for borrowers seeking a jumbo loan.

Higher credit score: When it comes to applying for a jumbo loan, credit score requirements are typically more stringent than for conventional mortgages. While some lenders may accept a lower score, a credit score of at least 720 is generally required to qualify for a jumbo loan. It’s essential to have a strong credit profile and a solid financial history to increase your chances of being approved for a jumbo mortgage.

Larger down payment: When applying for a jumbo loan, keep in mind that down payment requirements are generally more substantial than for conventional loans. While the specific amount will depend on the lender and the borrower’s financial situation, many jumbo loan lenders require a down payment of at least 10%, and some require as much as 20% or more.

More assets: To qualify for a jumbo loan, lenders require borrowers to demonstrate that they have sufficient liquid assets or savings to cover at least one year of loan payments. The exact amount of assets needed can vary depending on the lender and the size of the loan, but having more assets can increase the chances of approval and potentially lead to better terms and interest rates.

Lower debt-to-income ratio (DTI): Lenders typically require a debt-to-income ratio (DTI) of under 43% for jumbo loan borrowers, although a DTI closer to 36% is preferred. This ratio is calculated by dividing the sum of all monthly debt payments by the borrower’s gross monthly income. A lower DTI indicates a stronger ability to repay the loan and can help borrowers secure more favorable terms and rates. It’s important for Nebraska borrowers seeking a jumbo mortgage to have a clear understanding of their DTI and take steps to improve it if necessary.

Additional home appraisals: Mortgage lenders may require a second home appraisal as an extra layer of protection when it comes to jumbo loans. The second appraisal serves as an additional opinion to ensure the property’s value aligns with the loan amount. In housing markets with limited comparable property sales, this second appraisal may cost more than in neighborhoods with more frequent sales.

Source: redfin.com

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Are you questioning whether having kids is right for you? We understand your hesitation. In today’s world, it’s not a shock when people decide to forego parenthood and pursue different life paths or family structures. Between monetary concerns, mental health considerations, personal values, or lifestyle choices, there are many reasons why some decide that having children isn’t for them (or even their potential little ones). 

1. Kids Can Be Annoying

Photo Credit: Shutterstock.

One user shared, “Kids are annoying AF. Also, in this Economy, I can’t afford [anything]. How tf am I supposed to have a kid as well??” 

2. You Should Really Want Them First

Photo Credit: Shutterstock.

One Redditor shared wisdom: “Better to want kids but not have them than to have them and not want them. You don’t need reasons not to want kids. You better have really good reasons to have kids.”

Another user asked, “Why should I have really good reasons for having kids?”

“Because having a kid is a life-changing responsibility. For life. That’s not a quirky little decision of ‘Yeah, why not?’” one user replied.

Another commenter added, “That doesn’t mean it requires a really good reason. You just have to be a responsible adult that wants a kid.”

One Redditor concluded, “So you don’t need a good reason; you just have to be good at parenting.”

3. Kids Are a Lot of Work

Photo Credit: Shutterstock.

 A user commented, “Too loud, too sticky, too smelly, too dependent, incomprehensible beings, I lack patience. I like the quiet; I like my sleep. I like my child-free life.” 

4. Kids’ Medical Concerns Add Up

Photo Credit: Shutterstock.

One user elaborated on his reasons and posted, “I can’t afford them, and I know my genes are volatile. My offspring would be almost guaranteed to inherit my medical issues.”

5. You Have Childhood Trauma

Photo Credit: Shutterstock.

One user added, “Childhood trauma makes the idea of raising a child unthinkable. Also, an inability to work normal hours and provide for a child.”

6. You Don’t Like Kids

Photo Credit: Shutterstock.

One Redditor elaborated, “I don’t like kids. Nope, they’re not cute. They cost a lot. I hate loud noises. I am not a morning person. So, no to waking up early to prepare food for kids. I don’t have enough patience.

“I can’t even be responsible for myself most times; why would I want to bring another human? I prefer my solitude. I won’t be able to function as a human mom. I’m a dog mom, but that’s good enough for my caring nature.”

7. Kids Are Expensive

Photo Credit: Shutterstock.

One user posted, “Tons of $$$.”

Another user calculated, “Based on statistics, it takes around $300 000 to raise a kid until 18 without any emergencies, and this was like 4-5 years ago. It’s probably like 50k more now.”

8. Having Kids Can be Selfish

Photo Credit: Shutterstock.

“More important question: why should you want to have kids? There’s literally no unselfish reason to do so,” one Redditor commented.

Another user answered, “No reason to get rude towards people who do want kids.”

The OP responded, “Not being rude. It’s just a fact.”

Another user asked, “I’m curious: why do you think it’s selfish to want to have kids?” 

The OP answered, “I don’t think that….. It’s a fact. People, the majority of the time nowadays, have children as an accessory to their own lives. You are neglecting the fact that they are bringing a whole human into this world. To make an entire soul(s) endure the ups and downs of life on earth just to fulfill your own personal feelings of having a child is nothing but selfish.

“So again, I ask? What reason is there… outside of selfishness on their own decision… to have one? I’m genuinely curious as to a reason why a person should that is beyond their own decision to do so.”

9. You Don’t Want Them to Suffer on Earth

Photo Credit: Shutterstock.

One Redditor shared his frustration, “I am mad this is the planet I’ve been stuck on, So I occasionally feel like I would not want to be responsible for another human having to experience what this life is like sometimes.”

Another user countered, “Earth is beautiful, though.”

10. You Don’t Want to Pass On Health Issues

Photo Credit: Shutterstock.

One user shared, “A rare genetic condition runs in the family; it has been found in my sister and me too, it s-cks, and I don’t want to pass it down, and even if I don’t, I have a sick mom, I know how hard it is on the child. I don’t want to be the sick mom to another kid.

“I’m autistic, very sensitive to noise, textures, and smells, and will go crazy if I can’t have quiet/alone time. So I wouldn’t be a good mom, and I’d end up traumatizing the kid. I’m terrified of what pregnancy and giving birth do to a woman’s body.

“That doesn’t mean I’ll never decide that I want a baby. But I’d be irresponsible for that.” 

11. You Don’t Think Life is Worth While

Photo Credit: Shutterstock.

One user posted, “This world we live in is horrible; I hated going to school for the first 21 years of my life. I hate that all I have to live for is working to be able to afford to live. Why would I subject someone to live this life in this world? Also, I think people forget that their kids will eventually be grown—and often, parents fall short when teaching morals or how to be a good person; I know my parents didn’t teach me things I wish they did. What if they turn out to be a killer or [sexually abuse others] no matter how hard I try to be a good parent? Yeah, it’s a no. If I ever decide I want a child, I’ll adopt a teen or something.” 

12. You Don’t Like Pregnancy and Childbirth

Photo Credit: Shutterstock.

One user shared, “Pregnancy and birthing. Even if I was a millionaire and could afford kids and all their expenses, I could not birth them. I don’t want my [body] ripping down to my [butt]. Then there’s always a chance of dying. And you could go through all of that, and your kid may just die anyway. Not worth the pain.”

13. You’ve Lost Interest in Children

Photo Credit: Shutterstock.

One Redditor also shared, “Lost interest after 30. I’m not in good health to have kids. There is stuff I want to do that I couldn’t do when I was younger. I didn’t have the money to travel anywhere where I wanted to take up expensive hobbies. Plus, there are plenty of children in foster care that need a home if there is a small chance I change my mind.”

Do you agree with the others’ perspectives in this article? Share your comments below!

Source: Reddit.

These are 10 Things That Completely Destroyed The Love in a Relationship

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There’s no question that relationships can be confusing, but here are some of the top things to avoid if you want to keep your relationship healthy!

10 Actors and Actresses People Refuse to Watch Ever Again

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We all have a favorite actor or actress, but most of us have a least-favorite as well. Check out this list of actors and actresses people never want to see performing again!

Top 10 Worst Human Inventions of All Time

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Some inventions are world-changing, and some of them, well, they change the world in the wrong ways. Here are some of the worst inventions Redditors could think of.

10 Famous Celebrities Who Look Like They Smell Terrible

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We’ve all had moments of hygiene faux pas—but these celebrities just look like they don’t take care of themselves at all.

10 Terrible Fads People Are Glad Died Out

Photo Credit: Shutterstock.

Every fad has its time in the limelight, but some of them come and go faster than others; and some just need to die out right away. Check out this list of fads of which people were happy to see the last.



About the Author



Source: financequickfix.com

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Backpacking and camping are awesome frugal activities. It costs nothing to take a hike. It costs a bit more to camp overnight, but even that can be done inexpensively. While browsing the web for camping stuff, I stumbled upon a great list of frugal suggestions that were originally posted to the Usenet group rec.scouting on 03 December 1994!

According to the original poster:

These low-cost equipment/ideas/fixes for Scouting and camping in general [were] originally found on a F-Net Scouting board and [were] reposted on Fidonet on Nov 11/92 by Steve Simmons. The file evidently originated with BSA Troop 886 in the USA.

This list is HUGE. Here are my favorite ideas:

  1. Channel lock pliers make good pot holders.
  2. Nylon rope can be used as shoe laces.
  3. Use a large zip lock plastic bag, filled with air, as a pillow.
  4. A plastic bottle makes a good latrine for cold weather camping. (You don’t
    have to ‘go’ very far from your sleeping bag). Keep it just outside the tent flap.
  5. Carry several pieces of lumber cut into two-inch squares to summer camp and
    use these to level platform, tent, and cot.
  6. Old shower curtains make great ground tarps.
  7. Waterproof matches by dipping them in nail polish.
  8. Waterproof matches by dipping in melted paraffin.
  9. Make fire starters by filling paper condiment cups with saw dust and pouring
    paraffin into the cup.
  10. A length of chain and a piece of coat hanger bent into an S-shape will allow
    you to hang your lantern from a tree limb.
  11. Keep batteries in prescription bottles.
  12. Prescription bottles also make good match safes.
  13. In fact, prescription bottles (or 35mm file containers) make good storage places for small items of all sorts.
  14. A frisbee will add support to paper plates when the plate is placed inside
    the frisbee.
  15. Laundry lint makes good tinder.
  16. Keep the water in your canteen cooler by wrapping the canteen in foil.
  17. When it comes time to pack up at the end of a camp, a wet toothbrush, face
    cloth and bar of soap wrapped in foil won’t dampen the other things in your
    kit.
  18. To prevent batteries from wearing down if a flashlight is accidently nudged
    on while you’re traveling, put the flashlight batteries in backwards.
  19. To protect your feet from blisters, smear soap on the inside of your inner
    sock at the heel and underneath the toes. Carry along a bar of soap and,
    when you feel your feet become tender, give it a try.
  20. To keep mosquitoes away rub the inside of an orange peel on face, arms and
    legs.
  21. Wrap fishing gear in foil to keep line from tangling and hooks from rusting.
    By lining the compartments of a tackle box with foil, you can prevent rust
    damage to plugs and other equipment.
  22. To remove musty smell from canteen, put three teaspoons of baking soda into
    the canteen with a bit of water. Swish it around and let sit for an hour,
    then rinse out the canteen.
  23. An empty plastic soda bottle, cut off to a convenient height, will work as a
    camp bowl. You may want to sandpaper the cut to smooth the edge.
  24. Save inner cardboard tubes from kitchen and toilet rolls, stuff with waste
    paper and use as fire-lighters.
  25. Use zip-lock bags for mixing foods, be sure it is closed tight and the top
    is held shut before shaking or kneading.
  26. Duct tape can be used to repair most everything on a trip. Use it to patch
    tents, mend poles, hold up schedules, patch torn shoes, hold poles for
    mosquito nets to cots, etc.

If you like these, check out the entire list.

Source: getrichslowly.org

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HELOC, Servicing, PPE, Relationship, DPA Products; Events and Webinars This Week

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HELOC, Servicing, PPE, Relationship, DPA Products; Events and Webinars This Week

By:
Rob Chrisman

Tue, Aug 8 2023, 10:41 AM

Lending continues to be intertwined with legal and compliance issues. Here’s a story from overnight that is catching a lot of attention: “Equifax stock falls after saying it received a CID from the CFPB.” The Federal Trade Commission (FTC) agreed to drop its challenge to Intercontinental Exchange Inc.’s (ICE) proposed deal with Black Knight Inc. in a joint stipulation that allows them to work toward a settlement. Lender ToolKit is suing Celebrity Home Loans and MLD. and Meanwhile, lenders and vendors are doing what they can to increase business and tap into new markets, and with that in mind National MI is sponsoring a weekly podcast beginning today focused on offering mortgages to people in their 20s and 30s (Mortgages with Millennials). (Today’s podcast can be found here and is sponsored by SimpleNexus, an nCino Company, developer of mortgage technology uniting the people, systems, and stages of the mortgage process into one seamless, end-to-end solution. Listen to an interview with Bank of Oklahoma’s Chris Maloney on volatility and spreads, the money supply, and bond over/underperformance.)

Lender and Broker Software, Products, and Services

Everyday expenses are rising for millions, including many prospective homebuyers saving for a down payment. Mosi Gatling, a top producer at loanDepot, leaves no homeowner behind in the Las Vegas market as she assists mainly first-time, military and low-income buyers moving forward with mortgages supported with down payment assistance. Down Payment Resource shares her story and how her team of six does nine figure volume by working closely with Diane Arvizo of the Nevada Rural Housing Authority in Doing Well While Doing Good. We think this is a great example of one thing happening in Vegas that shouldn’t stay there. Read the full story here.

Work Hard Easier. Here’s how to work less and win more in this tough market. Your first instinct may be to work even harder than you have been. But instead, you should focus your energy on the essential tasks: making one-to-one phone calls, having face-to-face meetings, and personalizing your marketing with video content. Automate tasks like prospect follow-up, loan in-process updates, Realtor, and past customer outreach, thank you cards and closing gifts, etc. Set up automated social media posts also. A truly easy SmartCRM system will do all this and more. Take a look at Usherpa’s Relationship Engagement Platform, ranked number one in customer service and client loyalty in the mortgage business. Download this free Field Guide to Success and 3 Habits of Top Producers eguide to see how easy delegation can be.

In continuing to provide ways to grow happiness for our customers, TMS will become the Master Servicer for the Golden State Finance Authority’s (GSFA) Golden Opportunities “GO” a down payment assistance program. As of July 17, 2023, it is open for reservations. The Golden Opportunities DPA make mortgages more accessible for homeowners in CA by providing first mortgage financing, down payment, and closing costs assistance. The guideline eligibility under TMS will include FICO scores down to 620, DTIs up to 55% with AUS approval, and manual underwrites on VA and USDA loans. If you’re not an approved TMS lender, contact TMS. To become a participating lender of the GSFA Golden Opportunities DPA click here.

ICE Mortgage Technology’s VP of Product Strategy, Nancy Alley, was recently named one of HousingWire’s 2023 Women of Influence for her strategic execution and advancement of the Encompass® lending platform. Nancy’s profile spotlights how her unwavering customer focus has led her team to deliver the technology today’s mortgage lenders need to operate more efficiently and deliver a better borrower experience. Curious how Encompass customers are maximizing their technology investment and creating a future-proof business strategy? Click here to hear industry leaders share their key to success for staying at the forefront of innovation.

Big news! The Optimal Blue® PPE is now integrated with Encompass Partner Connect. Current clients can convert to the platform via the Encompass Partner Connect API. This new integration offers many features and benefits, including: a refreshed, modern Optimal Blue user interface; a single sign-on experience; users no longer needing to exit the loan on auto-accept transactions; the ability to view rates across all lock periods on one screen; an enhanced push queue view for secondary users; faster access to updates and new releases; and more! Complete your conversion to start taking advantage of these integration benefits today. Not using the Optimal Blue PPE yet? Learn how it can help you win more business by providing borrowers the right product at the best price for any mortgage financing scenario.

As lenders adapt to volatile mortgage rates, many are stopping to reconsider their servicing strategy. Do inconsistent mortgage origination volumes have you questioning what makes more sense: retaining servicing or selling servicing released? Seth Sprague, CMB, Richey May’s Director of Mortgage Banking Consulting Services (aka, resident servicing expert), outlines the 13 key trends and strategies in servicing including recommendations on how to make the right decisions for your business. Want more help defining the optimal strategy? You know where to find us.

TPO Programs for Brokers and Correspondents

Rising interest rates and inflation causing a dip in originations? Maximize your portfolio reach with HELOC options designed to help your customers tap into their home value to remodel kitchens, fund education, and more. LoanCare has a comprehensive understanding of the special nuances involved in servicing HELOCs such as knowing what’s required to appear on monthly statements, ensuring that interest calculations are accurate, and setting up the HELOCs correctly when the loans are on-boarded. We can accommodate segmented, fully amortized, and interest only HELOCs. Contact LoanCare today!

Events and Webinars

Back in 2016, Netflix reported that the machine learning algorithms behind its personal recommendation engine were saving the company $1 billion in content spending a year. AI and intelligent automation aren’t just technologies of the future, they’re tools you can and should be using to reach borrowers with the right message at the right time. Join Partners Mortgage’s Katie Pastor Trinidad and Joe Wilson of Social Coach alongside Dave Savage of TrustEngine on Thursday, August 10 at 2 pm ET for a free webinar on how AI can help you increase borrower engagement and loan conversions. Register today.

Lenders, want to save you and your borrower time and money? Appraisal waiver programs like Fannie Mae’s Value Acceptance + Property Data allow lenders to skip a traditional appraisal, saving the time and cost associated with it. Watch a free webinar recording featuring Lyle Radke, Senior Director of Collateral Policy at Fannie Mae. Learn the benefits of this program, use cases, and find answers to common lender questions. Plus, discover how to quickly get started with the program.

Modern financial institutions rely on their technology ecosystem to support the needs of increasingly diverse customer bases. But without a connected solution, financial institutions can’t provide seamless, personalized experiences that build lifelong relationships. Total Expert is purpose-built to help you deliver the perfect mix of digital and human-led engagements as modern consumers flow between digital channels, SMS, and in-person interactions. That’s why leading lenders like Guaranteed Rate, Atlantic Bay Mortgage, and PRMG trust Total Expert as the hub that connects their technology ecosystems and helps them deliver the perfect financial journey. Join us for a fireside chat with these industry trailblazers on Wednesday, Aug. 16 when they’ll present: Strategies for defining your tech ecosystem and goals, priorities for evaluating and procuring the tech that meets your goals, methods for generating and measuring ROI from your tech investments, and a live Total Expert platform demo. Register for the webinar.

Are you wondering what today’s Fed decision means for rates and the mortgage market? Register for a new webinar on August 9th at 11AM PT hosted by Agile Trading Technologies.

In this webinar, Phil Kukafka of Towne Mortgage, Ryan Ferderer of Multi-Bank Securities, and Andrew Rhodes of MCT will give an overview of MBS pooling, discuss the current market, share strategies for efficiently pooling and selling mortgage-backed securities, as well as the process for MBS pooling using Agile’s technology.

Join Optimal Blue for the next session in its Hedging 301 series on Wednesday, Aug. 9th, Noon ET, take a deeper dive into more advanced capital market strategies and how they naturally interplay with technological advances. This session will address the many ways Optimal Blue helps clients streamline daily processes to achieve success and optimal best execution – including mandatory price discovery and dissemination, saving basis points while delivering representative mix, solving for numerous execution iterations, and integrating to the MSR broker community for live, loan-level servicing valuations.

Join AGENT U on August 8th at 12:30-1:30pm EST for the next installment of their free monthly webinar. This month, the hosts are speaking with credit repair expert Janna Fox, CEO of ReScore, to learn about credit misconceptions. Learn how collection companies affect consumers’ credit scores, how to spot errors on credit reports, and gain insight into the hidden damage caused by pulling credit. Plus, learn expert methods to rapidly improve credit scores. Janna will be answering your questions during the live Q&A session. Visit www.agentulive.com for more details.

Looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup with Robbie and Rob Chrisman” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT starting August 9th, Robbie and Rob will dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Robbie and Rob will bring a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. Register for the first show on August 9th with Lenders One’s Justin Demola, CMB, as a featured guest discussing chatter from his hundreds of members.

“AFR Wholesale® (AFR) is teaming up with financing experts from Fannie Mae for the next session of our Why Wait Live Webinar Series! Please join us Wednesday, August 9th at 2 PM EST, where we will be highlighting what you need to know about manufactured home financing. Over this series, AFR has been discussing affordable financing solutions that together will help us provide homeownership opportunities to more families. Register Today! This is a live webinar, and a recording will not be provided.”

Friday the 11th at 3PM ET is the next edition of The Mortgage Collaborative’s Rundown with Melissa Langdale and me. We’ll will be covering current events in the mortgage market for 30 minutes starting at noon PT in “The Rundown”. Special guest co-host Skylar Olsen, Zillow’s Chief Economist.

James Brody, who was named Senior Litigation Partner in the wake of his merger with Garris Horn, LLP, will be co-hosting a webinar with The Mortgage Collaborative (“TMC”) at 10:00 AM PST, on August 17, titled: “Repurchase Defense Roundup: Proven Strategies to Help Lenders Fight Repurchase Demands and Pursue Culpable Third Parties.” Both Mr. Brody and his colleague, Ingrid Petersen, look forward to educating attendees on a number of invaluable strategies that will help them more effectively fight repurchase demands and improve their chances of being made whole whenever a lender is not able to successfully dispute a claim because of bad facts and/or needs to preserve a business relationship.

Capital Markets

Bond yields push higher to open the week following hawkish comments from Federal Reserve officials. New York Fed President Williams sees Federal Reserve policy remaining restrictive “for some time” and Fed Governor Bowman said that additional rate hikes will likely be needed. Rates have also been pushed higher following last week’s double-whammy of Fitch’s ratings downgrade and the heavy supply announcement from the U.S. Treasury. And don’t forget non-farm payrolls from Friday, which showed that despite missing the headline number and the previous month’s observations being revised lower, wage growth increased more than anticipated.

July marked the second consecutive month of job growth below 200k, signaling the labor market continues to cool. However, wages held firm, adding to arguments the Federal Reserve has gotten the upper hand on inflation without triggering a recession or major job losses. The unemployment rate declined to 3.50 percent, which is slightly above the 53-year low set back in January. The ISM manufacturing index improved but remained in contractionary territory for the ninth straight month in July. Price paid eased for the fifth time over the last seven months. Meanwhile, service data showed moderate expansion once again as consumers shift spending from goods to services. The most recent Senior Loan Officer Opinion Survey shows credit conditions for commercial and industrial loans remain tight and 40 percent expect further tightening. This could create a drag on growth as projects become delayed or abandoned due to lack of financing.

Though this week will be dominated by the Consumer Price Index report on Thursday and the Producer Price Index on Friday, as well as consumer sentiment, small business optimism, and mortgage earnings from United Wholesale, Loan Depot, and Guild, today’s economic calendar kicked off with NFIB small business optimism for July (hitting an 8-month high). We’ve also received the June trade deficit ($65.5 billion). Later today brings the beginning of Treasury’s quarterly refunding when it auctions $42 billion 3-year notes. Two Fed speakers are scheduled, Philadelphia President Harker and Richmond President Barkin. After the yield curve extended its recent steepening move yesterday, we begin the day with Agency MBS prices better by .125-.250 and the 10-year yielding 3.98 after closing yesterday at 4.08 percent, bonds rallying in part due to some slow-growth news out of China.

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Source: mortgagenewsdaily.com

Apache is functioning normally

The recent increase in mortgage rates, which has made buying a house or borrowing against home equity more expensive, in part reflects a broad increase in rates on long-term U.S. Treasury securities. But the increase in 30-year fixed mortgage rates over the past year has been unusually large relative to rates on long-term Treasury securities, which may suggest that mortgage rates are being pushed up by temporary factors. In particular, as the path of future interest rates becomes more certain, mortgage rates could fall by roughly half a percentage point.

Why have mortgage rates risen by so much more than yields on 10-year Treasury bonds? We find that much of the increase in this spread can be attributed to two factors: interest rates on Treasury bonds with maturities less than 10 years are higher than rates on 10-year Treasury bonds and mortgage prepayment risk has increased. Higher interest rates on shorter term bonds matter because mortgages are generally held for fewer than 10 years. Prepayment risk is higher than in recent decades largely because of uncertainty around future interest rates. Both these factors are likely to continue to push up mortgage rates over the next few quarters.

Factors Contributing to the Spread between Mortgage and 10-Year Treasury Bond Rates

Mortgage rates reflect the cost of using a mortgage to buy a home or tap home equity and thus affect the price of real estate and housing wealth. To the degree that the Federal Reserve’s tightening of monetary policy pushes up mortgage rates, this channel is an important way in which tighter monetary policy slows the economy and dampens inflation. As shown in figure 1, there has been a long downward trend in mortgage rates (dark green) over the past forty years in line with the rate of 10-year Treasury bonds (light green). However, the spread between mortgage rates and Treasury bond rates fluctuates for various reasons, including changes in credit conditions and interest rate uncertainty.

Mortgage rates generally track the rate on 10-year Treasury bonds because both instruments are long term and because mortgages have relatively stable risk. Nonetheless, to compensate investors for the higher risk of mortgages, rates for fixed mortgages have historically been, on average, one to two percentage points higher than Treasury yields. As rates on 10-year Treasury bonds have risen since mid-2020, mortgage rates have risen as well. But, over the past year, mortgage rates have risen by a surprisingly large amount relative to the 10-year Treasury rates, putting more restraint on borrowing conditions and the housing market.

Figure 2 shows the spread between 30-year fixed mortgage rates and 10-year Treasury rates from 1997 through May 2023. The peak spread during the housing crisis was 2.9 percentage points, reflecting a sharp tightening of credit conditions and significant disruptions in the financial markets that fund mortgages. The spread rose again during the COVID-19 pandemic, peaking in 2020 at 2.7 percentage points, reflecting shorter-lived disruptions in financial markets and concerns among lenders and investors in mortgage assets. Recently, the difference between 30-year fixed mortgage rates and 10-year Treasury rates has widened to an unusual degree. Since October 2022, the spread has hovered near the levels last seen during the housing crisis.

To explain why the spread between 30-year fixed mortgage rates and 10-year Treasury rates is so large, figure 3 parses it into three components:

  1. The spread between the rate charged to borrowers and the yield on mortgage-backed securities (MBS), referred to as the primary-secondary spread, which is generally stable when the costs of mortgage issuance are stable (blue).
  2. A combination of an adjustment for mortgage duration and prepayment risk (light green). The duration adjustment reflects that mortgages are generally held for fewer than 10 years and are more closely related to rates on a 7-year rather than a 10-year Treasury security. Prepayment risk reflects the probability that a future drop in rates induces borrowers to exercise their option to refinance.
  3. The remaining spread, which reflects changes in demand for mortgage-related assets after adjusting for prepayment risk (purple).

Given estimates of 1 and 3, we are able to estimate 2 by subtraction.

Factors Driving Higher Mortgages Rates

Using this framework, we find that the biggest reason that the mortgage spread to the 10-year Treasury rate is higher relative to other periods is due to the duration adjustment and prepayment risk. Since mortgages are typically held for fewer than 10 years, they have a shorter duration than 10-year Treasuries. Since early 2022, and for the first time since 2000, the rate on 7-year Treasury securities is higher than the rate on 10-year Treasury securities. In particular, from 2015 through 2019, the 10-year rate exceeded the 7-year rate by about 0.15 percentage point on average. Instead, year-to-date, the 7-year rate has exceeded the 10-year rate by about 0.10 percentage point, on average. As a result, the duration adjustment explains roughly a quarter of a percentage point of the unusually large spread shown in figure 3.

In addition, prepayment risk is higher now than in previous years. Borrowers with mortgages are affected differently if interest rates rise or fall. If rates rise, mortgage holders can simply choose to keep their mortgages at the previously issued rate. Instead, if rates fall, mortgage holders can prepay and refinance their mortgages at lower rates. That means that if there is a wider range of uncertainty around the future of interest rates—even if that range is symmetrical—there is a higher probability that current mortgage holders will find it advantageous to refinance in the future. As it happens, measures of interest rate uncertainty (such as the MOVE index, or Merrill Lynch Option Volatility Estimate Index) are currently higher than before the pandemic. Moreover, when rates are very low as they were in early 2020, there is only so much lower they can go, and thus borrowers and lenders alike see a smaller likelihood of a new mortgage being refinanced to a lower rate in the future. Instead, when mortgage rates are higher, as they are now, there are more possible future outcomes where rates fall and mortgages are refinanced. In other words, mortgage lenders want to protect against the possibility that mortgages issued recently will be refinanced to lower rates. As a result, lenders charge a premium.

To get a sense of how much this factor is pushing up mortgage rates to an unusual degree, it is useful to compare the estimated contributions of the duration adjustment and prepayment risk now versus the late 1990s, which was before the housing bubble, the housing crisis, the slow recovery from the 2008 recession, and the COVID-19 pandemic. In the late 1990s, 10-year Treasury rates were moderately higher than today but, like today, the 7-year rate was higher than the 10-year rate. At that time, the estimated contribution of the duration adjustment and prepayment risk to the mortgage rates spread was roughly a half percentage point lower than today.

While the largest factors driving high mortgage rates are the duration adjustment and prepayment risk, another reason mortgage rates have been unusually high is because of a slightly elevated primary-secondary spread. Lenders often finance mortgages by selling claims to MBS, which are pools of mortgage loans that are guaranteed by government-sponsored enterprises. The spread between the primary mortgage rate to borrowers and the secondary rate on MBS reflects the costs of issuing mortgages. For example, originators have to bear interest rate risk between the time an interest rate on a mortgage is set and when it is closed. The primary-secondary spread jumped by 0.3 percentage points toward the end of 2022, but has retraced most of the runup since then.

Finally, the component after accounting for those factors is also somewhat elevated relative to before the pandemic. This component, referred to as the option-adjusted spread (and “other” in figure 3) is likely elevated due to reduced demand in the MBS market. In recent years, the Fed has reduced its holdings of MBS. In addition, private investors in MBS have readjusted portfolios in response to an increase in interest rates. This was particularly true when long-term Treasury rates jumped in the fourth quarter of 2022; demand for MBS has remained cool since then. In addition, holders of MBS may be more pessimistic about prepayment risk than empirical models reflect, which could be the case if investors think that future mortgage rates are more likely to be a little lower relative to current rates rather than a little higher.

Conclusions

Higher mortgage rates are probably here to stay for a while, but a reduction in uncertainty could meaningfully bring down mortgage rates. If interest rate uncertainty returns to more normal levels and prepayment risk fell back to levels seen in the late 1990s, rates could fall – perhaps by half a percentage point. Nonetheless, one factor keeping rates higher that is likely to persist for the next several quarters is dampened demand for MBS as the market for mortgage financing continues to recalibrate to restrictive monetary policy and higher interest rates.

Until the economy slows to a more sustainable pace, uncertainty will remain. How will a slowdown affect house prices? How much will it reduce the income of borrowers? Will financial markets remain stable? Until such questions are resolved, unusually high mortgage rates will probably continue to cool the housing market and dampen borrowing against housing equity.

The Brookings Institution is financed through the support of a diverse array of foundations, corporations, governments, individuals, as well as an endowment. A list of donors can be found in our annual reports published online here. The findings, interpretations, and conclusions in this report are solely those of its author(s) and are not influenced by any donation.

Source: brookings.edu

Apache is functioning normally

Ginnie Mae president Alanna McCargo said on Tuesday that the liquidity challenges faced by nonbanks are a critical issue facing the U.S. government’s mortgage system considering their increasingly important role in the space, and that supporting nonbanks with additional credit facilities will be a priority for the future.

McCargo discussed the matter during a live conversation with Dennis Shea, the executive director of the J. Ronald Terwilliger Center for Housing Policy at BPC.

“There were a lot of people at the [beginning of the COVID-19 pandemic] that were asking for the government to figure out ways for the nonbanks to tap into some of the other liquidity facilities that are available to the banking sector,” McCargo said. “That didn’t get where it needed to get.”

She went on to call nonbank liquidity the “biggest challenge of our time, especially now, because we are not in a 2-3% interest rate environment.”

The cost for nonbanks to borrow in a market with very little refinance activity is very high, and accounts for a notable stress on the government mortgage system, McCargo explained. That’s why determining the course for nonbank facilities requires collaboration with other departments at the federal government, she said.

“We’re thinking about and focused on this every single day working with our partners at [the Department of the] Treasury and elsewhere, to figure out […] what ways the government could support, in the future, a more robust facility for the nonbanking sector.”

Something that remains to be determined is how to support these kinds of institutions, particularly when a future crisis comes along, she explained.

“Speaking for myself, probably one of the biggest things that we need to figure out – we do not need to enter another crisis [or] downturn of any kind and not know how we’re going to support these institutions,” she said. “These institutions are incredibly important to the system and to the constituents that we all serve. And so, their failure would be a major problem for all of us. So, I think we just have to figure out what that’s going to look like, and that’s been some of the work we’ve been very focused on with our colleagues.”

McCargo also spoke about other priorities including the Biden administration’s focus on housing equality, the federal bank risk-sharing program and multifamily affordability, among other topics.

Source: housingwire.com

Apache is functioning normally

During my twenties, I accumulated nearly $25,000 in consumer debt. I had a spending problem. With time, I was able to get my spending under control (mostly), but I still owned overwhelming debt. How could I get rid of it?

The personal finance books all suggested the same approach:

  1. Order your debts from highest interest rate to lowest interest rate.
  2. Designate a certain amount of money to pay toward debts each month.
  3. Pay the minimum payment on all debts except the one with the highest interest rate.
  4. Throw every other penny at the debt with the highest interest rate.
  5. When that debt is gone, do not alter the monthly amount used to pay debts, but throw all you can at the debt with the next-highest interest rate.

This made perfect sense. By doing this, I would be paying the minimum amount in interest over the long term. The trouble was, my highest-interest rate debt was also my debt with the biggest balance (a fully-maxed $12,000 credit card at 19.8% interest). I’d plug away at this debt for several months at a time, but then give up because it felt like I was never getting anywhere.

This happened over and over. I’d start and fail. Start and fail. Then I read about the Debt Snowball method in Dave Ramsey’s The Total Money Makeover.

How the Debt Snowball Works

The Debt Snowball method is similar to the traditional approach except that instead of attacking high-interest rate debts first, you attack low-balance debts first. Why? Because you’ll get the psychological lift of pinging debts off in rapid succession. And if you’re like me, this makes all the difference. The Debt Snowball approach is:

  1. Order your debts from lowest balance to highest balance.
  2. Designate a certain amount of money to pay toward debts each month.
  3. Pay the minimum payment on all debts except the one with the lowest balance.
  4. Throw every other penny at the debt with the lowest balance.
  5. When that debt is gone, do not alter the monthly amount used to pay debts, but throw all you can at the debt with the next-lowest balance.

(For more on this, including some actual figures, see my entry on two approaches to debt elimination.)

When I read about the Debt Snowball method, I was skeptical. I knew it would cost me more in the long run, at least on paper. But I figured I had nothing to lose. I tried it. In four months I’d paid off most of my debts. I was shocked. I’d been trying and failing for years, and now I was able to make a huge dent in just months? It was all because I had changed my approach just slightly.

Why the Debt Snowball Works

Humans are complex psychological creatures. They’re not adding machines. Many of us know what we ought to do but find it difficult to actually make the best choices. If we were adding machines, we wouldn’t accumulate $20,000 in consumer debt in the first place! It’s misguided to tell somebody so deep in debt that they must follow the repayment plan that minimizes interest payments. The important thing to do is to set up a system of positive reinforcement, and that’s exactly what the Debt Snowball method does.

Which method should you choose? Do what works for you. The first method can save you money in the long-run. But if you’ve tried it and failed, give the Debt Snowball method a shot. It might be the answer you’re searching for!

Source: getrichslowly.org

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About the Author

Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. He was a financial planner for 16+ years having founded, Alliance Wealth Management, a SEC Registered Investment Advisory firm, before selling it to focus on his passion – educating the masses on the importance of financial freedom through this blog, his podcast, and YouTube channel.

Jeff holds a Bachelors in Science in Finance and minor in Accounting from Southern Illinois University – Carbondale. In addition to his CFP® designation, he also earned the marks of AAMS® – Accredited Asset Management Specialist – and CRPC® – Chartered Retirement Planning Counselor.

While a practicing financial advisor, Jeff was named to Investopedia’s distinguished list of Top 100 advisors (as high as #6) multiple times and CNBC’s Digital Advisory Council.

Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.

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Source: goodfinancialcents.com

Apache is functioning normally

The majority of benchmark mortgage refi rates rose today versus this time last week, according to data compiled by Bankrate.

  • 30-year fixed refinance rate: 7.46%, +0.07 vs. a week ago
  • 15-year fixed refinance rate: 6.76%, +0.07 vs. a week ago
  • 10-year fixed refinance rate: 6.83%, +0.11 vs. a week ago

The Federal Reserve resumed its fight against inflation at the central bank’s July 26 meeting, raising rates a quarter point.

Housing economists hope an end is in sight for rate tightening – and that refinance rates finally will retreat a bit later in the year.

“A Fed rate hike was a foregone conclusion, but the mystery surrounds what will happen with inflation,” says Greg McBride, Bankrate’s chief financial analyst. “If we see meaningful improvement in core inflation, that’ll help tame long-term rates too.”

30-year fixed refinance

The average 30-year fixed-refinance rate is 7.46 percent, up 7 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 7.49 percent.

At the current average rate, you’ll pay $696.48 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $4.78 higher.

You can use Bankrate’s mortgage calculator to get a handle on what your monthly payments would be and see what the effects of making extra payments would be. It will also help you calculate how much interest you’ll pay over the life of the loan.

15-year fixed refinance

The 15-year fixed refi average rate is now 6.76 percent, up 7 basis points since the same time last week.

Monthly payments on a 15-year fixed refinance at that rate will cost around $878 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.

10-year fixed refinance

The average rate for a 10-year fixed-refinance loan is 6.83 percent, up 11 basis points over the last week.

Monthly payments on a 10-year fixed-rate refi at 6.83 percent would cost $1,152.34 per month for every $100,000 you borrow. That’s a lot more than the monthly payment on even a 15-year refinance, but in return you’ll pay even less in interest than you would with a 15-year term.

Where are mortgage refi rates headed?

Most housing economists expect mortgage rates to fall beneath 6 percent by the end of the year. To see where Bankrate’s panel of experts expect rates to go from here, check out our Rate Trend Index.

Want to see where rates are right now? See local mortgage rates.

Last updated August 8, 2023.

What does it mean to refinance your mortgage?

Refinancing your mortgage means taking out a new home loan. In the process, you’ll fully pay off your existing loan, and then start payments on a new one. The two most popular kinds of mortgage refinances are rate-and-term changes — which result in a new interest rate and a reset payment clock — and cash-out refinances. Cash-out refinances allow homeowners to take advantage of their home equity by taking out a new mortgage with a larger principal based on the home’s current value.

30-year refi? 15-year refi? Cash-out? What is right for me?

No matter what kind of refinance you choose, once you close on your new loan, the payment clock goes back to zero. For example, if you take out a new 30-year mortgage, you’ll have another 30 years of payments in front of you.

That said, a 30-year refi is the right choice for the majority of people. Extending the term of your loan means lower monthly payments, which can free up some extra funds if money is tight.

A 15-year mortgage refinance has some advantages, too, namely that you pay a lot less interest over the life of the loan. Fifteen-year mortgages tend to charge lower rates than 30-year mortgages, and they also have a shorter repayment window, so the overall savings can be significant. Remember, though, that a short repayment window is a double-edged sword. It does help you save in the long run, but with less time to pay, 15-year mortgages have higher monthly payments.

Here are sample payments on a $300,000 mortgage at 6 percent interest:

Term Monthly payment Total cost
30-year $1,798 $647,934
15-year $2,531 $455,746

A new mortgage can also help you tap your home equity if you opt for a cash-out option. If you have enough equity in your home, you can apply for a new mortgage with a larger principal balance and take the difference from what you owe on your old loan in cash. Doing that can allow you to finance other spending at a low rate compared with other forms of borrowing. Some of the most common uses for cash-out funds are home improvements, debt consolidation or education financing.

What will a refinance cost?

Refinance costs can change based on where you’re located, the lender you’re working with and a number of other factors. The general guidance, however, is that costs are around 2 to 5 percent of the loan’s principal amount. On a $300,000 mortgage, that equates to $6,000 to $15,000 in closing costs.

Can you save money with a refinance? Is now a good time to refi?

Because many homeowners locked in record-low rates in 2020 and 2021 and they’ve since since gone up, refinancing generally isn’t a money-saving move at this time. Consider refinancing in the future if prevailing interest rates fall below the rate you currently have on your mortgage.

Keep in mind, however, you’ll want to calculate your break-even timeline. If you’re planning to move soon, you may not save enough to recoup your closing costs before you do.

How to shop for and compare mortgages

Shopping around and comparing offers is critical to get the best deal on your mortgage refinance. Make sure to get quotes from at least three lenders, and pay attention not just to the interest rate but also to the fees they charge and other terms. Sometimes it’s a better deal to choose a slightly higher-interest loan if the other aspects are favorable.

Steps to get the best mortgage rate

  • Shop around
  • Do your homework to understand the mortgage market in your area
  • Consider working with a mortgage broker
  • Don’t try to time the market — rates change nearly constantly

Minimum credit scores for different kinds of mortgages

Different mortgages have different minimum requirements for their borrowers. Although lenders can adjust these numbers as they please, here are the most common credit score minimums for different types of mortgages:

If your credit score is less than 500, work on improving it before applying for a mortgage, because most lenders won’t issue a loan to someone with a score of 499 or lower. On the other hand, if your credit score is higher than these minimums, you may be able to secure a better interest rate.

Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.

To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s Rate Averages.”

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Source: bankrate.com