As in many areas of life, people often prefer certainty when it comes to their mortgage payment. For this reason, the idea of going with an adjustable-rate mortgage (ARM) is often dismissed out of hand. However, there are certainly reasons to consider it, particularly if you’re refinancing to save money. We’ll discuss the pros and cons of an ARM refinance, but let’s start with the basics.
While we aren’t beyond the pandemic by any stretch of the imagination yet, the fundamentals have grown stronger. The Federal Reserve tried to impart that message last Wednesday, while still pointing out that they were prepared for any change in course. For the first time, the Fed talked about discussions to slow asset purchases.
The median price of an existing home according to the National Association of REALTORS® was $350,300 in May. It’s a new record high and 23.6% above where prices were in May 2020. When looking at new home sales, the median sale price was up 18.1% on the year at $374,400.
Paying for a house with cash has definite perks. Did you know that paying cash rather than getting a mortgage could help you win a bidding war when buying a new home? You may even be able to negotiate a lower price on the home if you’re paying cash.
The Federal Reserve kept short-term rates where they are when its decision was released at the end of yesterday’s April Federal Open Market Committee meeting. Committee members will also continue the current level of spending on mortgage-backed securities (MBS). Both moves mean good things for mortgage rates.