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Rate Lock Advisory
This week brings us the release of six monthly and quarterly economic reports for the markets to digest, one of which is highly important. With releases set for each day except Thursday, it is safe to assume we will see another active week for rates. A strong rally late Friday should cause the week to begin with an improvement to rates if you didn’t see an intraday revision before last week closed.
FAQ
Popular Questions
Top mortgage questions, short answers for clarity on home financing.
A fixed-rate mortgage maintains the same interest rate throughout the loan term, providing stability. In contrast, an adjustable-rate mortgage (ARM) typically starts with a lower rate but may change over time based on market conditions.
Lenders typically prefer a credit score of 620 or higher for conventional loans. Government-backed loans like FHA and VA may accept lower scores.
Yes, mortgage refinancing can often reduce monthly payments by securing a lower interest rate or extending the loan term.
The down payment requirement varies but often ranges from 3% to 20% of the home's purchase price. Certain loan programs, such as FHA or VA, may have lower down payment options.
The process involves pre-approval, application, document verification, underwriting, and closing. Pre-approval helps determine the loan amount you can afford.
Pre-approval is a more rigorous process involving a comprehensive review of your credit, income, and other financial factors, resulting in a firm commitment from the lender for a specific loan amount.
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