04 Apr 2025
By Tawnya King

Understanding the Role of the Federal Reserve in Mortgage Rates

Mortgage Rates
When you're thinking about buying a home, you may hear a lot about mortgage rates going up or down. But have you ever wondered what causes these changes? One of the biggest influences on mortgage rates is the Federal Reserve, often called "the Fed." While the Fed doesn’t set mortgage rates directly, its policies play a major role in how much you’ll pay for your home loan. Let’s break it down in simple terms: What is the Federal Reserve?The Federal Reserve is the central bank of the United States. Its main job is to keep the economy stable by managing…
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02 Jan 2025
By Tawnya King

How Mortgage Rates Are Determined

Mortgage Rates
When you’re looking to purchase a home or refinance an existing mortgage, understanding how mortgage rates are determined is key to navigating your financial journey. These rates are influenced by a combination of personal financial factors and broader economic conditions, which work together to impact how much you’ll pay over the life of your loan. 1. Your Credit Score One of the most significant factors influencing your mortgage rate is your credit score. This three-digit number reflects your financial responsibility and creditworthiness. Borrowers with higher credit scores typically receive lower interest rates because they are considered less risky by lenders.…
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06 Dec 2024
By Tawnya King

Why Refinancing Your Mortgage Before the Year Ends Is a Great Option

Mortgage Rates
As the year comes to a close, it’s the perfect time to consider refinancing your mortgage. Whether you’ve been thinking about lowering your monthly payment, securing a better interest rate, or tapping into your home’s equity, refinancing can offer many benefits. However, the timing can make all the difference. Here's why refinancing before the year ends might be a great option for you. 1. Lock in Lower Interest Rates Interest rates fluctuate throughout the year, and while it's hard to predict exactly when the best time to refinance will be, rates tend to dip during the fall and winter months.…
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29 Nov 2024
By Tawnya King

What You Can Do Now to Prepare for Mortgage Rate Drops

Mortgage Rates
As we move into the last month of 2024, many potential homebuyers are eagerly awaiting a drop in mortgage rates. With inflation numbers looking promising, there's hope that the Federal Reserve will lower the federal funds rate, which typically drives mortgage rates down as well. If you're planning to buy a home or refinance when rates drop, now is the perfect time to start preparing. Here are five key steps to get ready for the mortgage rate decrease and ensure you’re in the best possible position: 1. Improve Your Credit ScoreYour credit score is one of the most important factors…
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25 Oct 2024
By Tawnya King

What Is A Mortgage Par Rate And How Does It Work

Mortgage Rates
Think of the par rate as the raw, default rate offered by a lender. It’s not the lowest rate you can get, nor is it inflated by any adjustments. Lenders determine the par rate based on a variety of factors, such as current market conditions, your credit score, the loan type, and the loan amount. Discount Points: Lowering Your Rate When you're negotiating your mortgage, you can choose to buy "discount points" to lower the interest rate below the par rate. Each discount point typically costs 1% of the loan amount and can lower your interest rate by a fraction…
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12 Sep 2024
By Tawnya King

What Borrowers Need to Know About Mortgage Rate Locks

Mortgage Rates
When it comes to securing a mortgage, timing is everything—especially when it comes to locking in an interest rate. Mortgage rates can fluctuate daily, and even a small change can have a significant impact on your monthly payments and the total cost of your loan. To protect yourself from rising interest rates while you’re in the process of buying a home or refinancing, you can use a mortgage rate lock. What Is a Mortgage Rate Lock? A mortgage rate lock is an agreement between a borrower and a lender that locks in a specific interest rate on a mortgage for…
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15 Aug 2024
By Tawnya King

The Impact of Inflation on Mortgage Rates and Homebuying Power

Mortgage Rates
In today's economic climate, inflation has become a hot topic, especially for potential homebuyers. Understanding how inflation affects mortgage rates and your homebuying power is crucial. Let's see how it can impact your journey to homeownership. What is Inflation? First and foremost, inflation refers to the rate at which the general level of prices for goods and services rises. When inflation is high, purchasing power decreases because each unit of currency buys fewer goods and services. How Inflation Affects Mortgage Rates Inflation and mortgage rates are closely linked. Here's how: Rising Interest Rates: When inflation increases, central banks often raise…
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