Blog – Page 66 of 865 – Mike Pfefferman

19

Jun

Holidays

A Commitment to Diversity and Inclusion

This historic day commemorates the emancipation of enslaved African Americans in the United States, and it’s more relevant now than ever as we strive to promote diversity, equity, and inclusion in everything we do. Juneteenth, celebrated on June 19th each year, marks the day in 1865 when Union soldiers arrived in Galveston, Texas, bringing the news of freedom to the last remaining enslaved African Americans. It’s a poignant reminder of both the injustices of the past and the ongoing journey towards equality.

We believe in honoring this day not just with words, but with meaningful action. Supporting Juneteenth is about acknowledging our history, celebrating the contributions of African Americans to our society, and reaffirming our commitment to creating a workplace and a community where everyone feels valued and respected.

Our Commitment Moving Forward

Celebrating Juneteenth is just one step in our ongoing journey toward fostering a more inclusive environment. We’re committed to:

Diverse Representation: Ensuring diversity in our workforce, leadership, and supplier base.
Inclusive Practices: Implementing policies that promote equity and fairness for all.
Community Engagement: Supporting initiatives that uplift marginalized communities and amplify diverse voices.

How You Can Get Involved

As a consumer, you have the power to support businesses that share your values. Look for companies that are not only celebrating Juneteenth but actively working towards a more inclusive future. Whether it’s through your purchasing decisions, social media support, or simply spreading awareness, every action counts.

Together, we can make a difference and honor the legacy of Juneteenth in meaningful ways. Join us as we celebrate diversity, promote inclusion, and strive for a better tomorrow.

We want to hear how you are celebrating Juneteenth, let us know in the comments below.

#Juneteenth #CelebrateFreedom #DiversityandInclusion

18

Jun

By Mike Pfefferman

Mortgage

Exploring 5 Types of Refinance Loans

Refinancing your mortgage can be a smart financial move, offering potential savings, access to cash, or improved loan terms. With various refinancing options available, it’s essential to understand what each type entails to make an informed decision. Let’s look into five popular types of refinance loans: Rate and Term Refinance, Cash-Out Refinance, Cash-In Refinance, Home Affordable Refinance Program (HARP), and Short Refinance.

1. Rate and Term Refinance

What is it? A Rate and Term Refinance allows you to change the interest rate, loan term, or both without altering the loan amount.

Benefits:

Lower Interest Rates: Securing a lower interest rate can reduce monthly payments and save on interest over the life of the loan.
Shorter Loan Term: Switching to a shorter loan term can help you pay off your mortgage faster, though it may increase monthly payments.
Stabilized Payments: Refinancing from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage can provide predictable payments.

Considerations:

Closing Costs: Be prepared for closing costs, which can be significant, though sometimes these can be rolled into the loan amount.
Break-Even Point: Calculate how long it will take to recoup the closing costs with your monthly savings to ensure it’s worth it.

2. Cash-Out Refinance

What is it? A Cash-Out Refinance replaces your existing mortgage with a new, larger loan, providing you with the difference in cash.

Benefits:

Access to Cash: Use the extra cash for home improvements, debt consolidation, or other financial needs.
Potential Tax Deductions: Interest on the mortgage may be tax-deductible if the cash is used for home improvements.

Considerations:

Higher Monthly Payments: Increasing the loan amount typically raises monthly payments.
Equity Reduction: Tapping into home equity reduces the amount of ownership in your home.
Risk of Foreclosure: If you use the cash irresponsibly, you risk foreclosure if you can’t make the higher payments.

3. Cash-In Refinance

What is it? A Cash-In Refinance involves paying a lump sum toward your mortgage to reduce the loan balance and refinance at a lower rate or better terms.

Benefits:

Lower Loan-to-Value (LTV) Ratio: Reducing your LTV can help you qualify for better interest rates.
Reduced Monthly Payments: Lowering the loan balance can significantly decrease monthly payments.
Avoiding PMI: Bringing the LTV below 80% can eliminate private mortgage insurance (PMI).

Considerations:

Upfront Cash Requirement: Requires a substantial upfront cash payment, which may not be feasible for everyone.
Opportunity Cost: Using savings for refinancing means those funds aren’t available for other investments or emergencies.

4. Home Affordable Refinance Program (HARP)

What is it? HARP was designed to help homeowners with little or no equity refinance their mortgages to more affordable terms.

Benefits:

Eligibility Flexibility: HARP allows refinancing for those who might not qualify for traditional refinance loans due to low equity.
No Appraisal Needed: Often, no new appraisal is required, simplifying the process.
Reduced Fees: Lower closing costs and fees compared to conventional refinancing options.

Considerations:

Program Ended: HARP ended in 2018, but similar options like Fannie Mae’s High LTV Refinance Option are available.
Eligibility Requirements: Specific criteria must be met, including the loan being owned by Fannie Mae or Freddie Mac.

5. Short Refinance

What is it? A Short Refinance occurs when a lender agrees to pay off your existing mortgage and replace it with a new, more affordable loan, often as part of a foreclosure prevention strategy.

Benefits:

Avoiding Foreclosure: Helps struggling homeowners avoid foreclosure by obtaining more manageable loan terms.
Debt Reduction: This can significantly reduce the principal balance, easing financial strain.

Considerations:

Credit Impact: This may negatively impact your credit score, similar to a short sale or loan modification.
Lender Approval: Requires lender agreement, which can be challenging to obtain.

Refinancing your mortgage can be a powerful tool for achieving financial flexibility, whether you aim to lower your interest rate, access home equity, or avoid foreclosure. Understanding the difference between each refinancing option—Rate and Term Refinance, Cash-Out Refinance, Cash-In Refinance, Home Affordable Refinance Program (HARP), and Short Refinance—enables you to make the best decision for your financial situation. By carefully weighing the benefits and considerations of each type, you can choose the path that best aligns with your long-term financial goals and current needs.

17

Jun

By Mike Pfefferman

Financial Reports

What’s Ahead For Mortgage Rates This Week – June 17th, 2024

A welcome and unexpected data release for both the PPI and CPI shows inflation expectations coming in lower than expected. The positive news was somewhat mitigated by the hawkish FOMC rate decision that also took place during the same week. Still, there is more optimism given that the data releases in the past 30 days have shown signs of inflation coming under control. At the very least, it suggests that the Federal Reserve’s policy to keep inflation under control has been effective. As a result, lending partners have quickly cut rates again after the meeting this week.

Consumer Price Index

The cost of consumer goods and services were unchanged in May for the first time in almost two years, suggesting the resurgence in inflation earlier in the year might be petering out. The flat reading in the Consumer Price Index last month was below the forecast for a 0.1% increase, based on a poll of economists by The Wall Street Journal.

Produce Price Index

U.S. wholesale prices fell in May for the second time in three months (thanks partly to lower gas prices), perhaps another sign that the upturn in inflation earlier this year is fading. The Producer Price Index dropped 0.2% last month, the government said Thursday. Economists polled by The Wall Street Journal had forecast an increase of 0.1%.

FOMC Rate Decision

Federal Reserve Chair Jerome Powell was tight-lipped at his press conference Wednesday, having been stung previously by too much optimism. The Federal Reserve remained hawkish throughout the conference and maintained current interest rates.

Primary Mortgage Market Survey Index

15-Yr FRM rates are seeing a decrease by -0.12% with the current rate at 6.17%
30-Yr FRM rates are seeing a decrease by -0.04% with the current rate at 6.95%

MND Rate Index

30-Yr FHA rates are seeing a decrease by -0.20% for this week. Current rates at 6.44%
30-Yr VA rates are seeing a decrease by -0.20% for this week. Current rates at 6.45%

Jobless Claims

Initial Claims were reported to be 242,000 compared to the expected claims of 225,000. The prior week landed at 229,000.

What’s Ahead

The proceeding weeks for FOMC rate decisions and inflation data reports are typically light. Next week has a higher-than-expected amount of influential releases. The lineup includes Retail Sales and the official S&P Global US Manufacturing PMI numbers, giving us a clear indicator of the state of manufacturing for the U.S.