In December of 2020, Fannie Mae and Freddie Mac, the two largest government-controlled mortgage companies, which purchase half of all mortgages in the US, applied an additional 0.5% fee to all of their conventional loan purchases. The fee, intended to reduce Covid-19 and the housing market risks, added approximately $1,400 in costs to an average […]
According to a leading measure of U.S. residential real estate prices, the S&P CoreLogic Case-Shiller Home Price Index, home prices rose 11.2% year over year in January. With a limited supply of new homes on the market, increased demand from ultra-low interest rates, and stay-at-home dynamics due to Covid-19, the conditions are perfect for higher […]
COVID has permeated our lives to such a degree that it is easy to miss significant opportunities that are right in front of you. Currently, one of the biggest opportunities is historically low mortgage interest rates. In March of this year, 30-year mortgage rates dropped to an all-time low of 3.25%. The 15-year fixed-rate was […]
One bright spot for consumers in this uncertain economic environment is the recent drop in borrowing costs, particularly in home mortgages and home equity lines of credit (HELOCs). While the opportunity to borrow at lower rates is welcomed, it comes with the catch of higher borrowing standards! In fact, JPMorgan Chase, one the country’s largest […]
A byproduct of the COVID economic crash is extremely low interest rates…orchestrated by the Federal Reserve. One long-standing family wealth transfer strategy is making low-interest loans to family members. For loans between family members, you are required by law to charge a minimum interest rate based on the monthly published Applicable Federal Rates (AFR). These […]
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was passed by Congress and signed by President Trump on March 27 and is the most significant economic aid package of our lifetime…amounting to over $2 trillion. It provides a variety of financial relief to individuals, small business owners, and large corporations. $350 billion is […]