StreamLoan's Blog

Image Source: Unsplash.com

Do you need an accountant when buying a home?

A Page from Amazon, 1-Click HomeOwners Insurance Policy Quotes, Because Two Clicks is Too Many...

Fireside Chat with StreamLoan’s CEO and Co-Founder Stephen Bulfer

StreamLoan focuses primarily on the processes involved with buying homes and handling mortgages. But today, a lot of homeowners are exploring the idea of using their properties as rental assets, and in some cases even turning this action into a side business. Some are finding ways to generate significant income by renting out properties on platforms like Airbnb, and this is naturally leading others to want to give it a try. So for those who may be looking into home ownership and considering rental potential— or perhaps those who have recently secured homes and are thinking of the same — we are listing some of the important questions to ask before you start renting out.

Whether you have a current mortgage or plan to apply for a new one, there are many different avenues you can take to save money on your mortgage. With the current low interest rate environment from COVID-19 (as of August 2020) the borrowing environment is prime to put these tips into use. Here are 5 clever ways to save money on your mortgage.

Among speculation centered on long-term worries about the effects of COVID-19 shutdowns on the future of the United States economy, the Federal Reserve has committed to keeping interest rates low to encourage borrowing and stimulate the economy. Compared to last year (2019), mortgage rates are already remarkably lower, reaching below 3.3% for a conventional 30-year fixed mortgage. What does this mean for the mortgage industry and how can the average borrower actually benefit off of these record low mortgage rates?

The last few years have offered an extremely friendly interest rate environment.  This has encouraged purchasing, refinancing, and more real estate activity.  As of late, we have seen the Fed nudge rates higher, which was inevitable at some point, and likely a good thing in the long run.  Even with this shift, in rates, new financial opportunities on on the doorstep for homeowners - and for those lenders offering deals to these homeowners.  What I found interesting  is that roughly half of the tappable equity belongs to borrowers whose first-lien mortgages have current interest rates higher than today’s 30-year rate – making them potential candidates for cash-out refis.  This translates to trillions of dollars in equity that can (and will be) tapped.  Meanwhile, the other half of tappable equity belongs to borrowers whose first-lien mortgages have current interest rates under 4%. What is shocking, is that 23% of cash-out refi borrowers this last year refinanced into higher base mortgage rate to take advantage of cashing out.  This strategy can make sense if there is debt consolidation or some other financial goal to reduce the blended rate of other debt at these lower rates.  Just be careful about the rate adjustments on any floating or adjustable rate loan products - that can bite!  (source: http://bit.ly/1nfZOfT)  We know the pain of shopping for a mortgage product and doing all the paperwork required to get a refinance or HELOC deal done - we are here at StreamLoan to help - and make this process simple for both the lending team and customers.   Visit us at www.streamloan.io for more information - and as always, feel free to reach out to us directly.  We welcome discussions.