April 29th to May 3rd

Fed Meeting & Jobs Week

The Fed met this week, and as expected, they did not change the rate. The good news that came out of their meeting was that they don’t have any rate hikes on the table for consideration at all now and that they are going to hold more bonds on their balance sheet, reducing the volume going out in the market. This news helped MBS gain back much of the loss from the past two weeks.

The BLS jobs report also helped dramatically today by showing the labor market softening, which the Fed needs to see in order to consider cutting rates in the future. Now, just one rate cut is forecasted for the year.

These mortgage rates are estimated by a third party using industry averages for owner-occupied properties and do not include refinancing options. Rates may vary based on availability and lender approval.

Program Spotlight: HELOCs, Bridge Loans, and Cross Collateralization

For our clients who are ready to move but need more interim, non-contingent financing, we have several options to consider:

  • HELOCs — We offer a first-lien HELOC for free and clear or low-balance first mortgage payoffs. This HELOC would be secured on the new property until the existing one is sold. The proceeds can then be paid off, and the HELOC can be left open for use for up to 10 years afterward.
  • Bridge Loans — These are placed on the existing property and paid off once sold. They are good for existing properties expected to sell in less than 12 months.
  • Cross Collateralization — Using the equity from both properties, the new monthly payment is based on the expected recast loan amount when the existing loan is sold, and the proceeds pay down the new loan.