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29 Jan 2016
By Mark Feder

Video: What Is “Prime”?

Mortagage Tips
What Is "Prime"? The Prime Lending Rate - sometimes just called "Prime"  - is the interest rate that banks charge each other for overnight loans. Some consumer rates - like ARMs - are set in relation to Prime.In the US, Prime is affected by the Federal Reserve lending rate to banks; historically, Prime is about 3 percent above the Fed rate.The video shows  an example. The Federal Reserve loans to Bank A at 1% Bank A loans to Bank B at 4% Both banks - A & B - will recalculate variable-rate loans like ARMs on that 4% Prime figure.…
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28 Jan 2016
By Mark Feder

FOMC Statement: Fed Holds Steady on Rates

Market Outlook
According to statement issued at the conclusion of today's Federal Open Market Committee meeting, committee members decided against raising the target federal funds rate. Mixed economic conditions, slower economic growth in the 4th quarter and low inflation contributed to the decision against raising rates. The target federal funds rate was raised in December to a range of 0.25 to 1.59 percent after remaining at 0.00 to 0.25 percent for several years. While rising fed rates were expected to cause a hike in mortgage rates, mortgage rates fell after December's rate hike. Committee Cites Mixed Data in Decision While labor conditions…
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28 Jan 2016
By Mark Feder

FOMC Statement: Fed Holds Steady on Rates

Market Outlook
According to statement issued at the conclusion of today's Federal Open Market Committee meeting, committee members decided against raising the target federal funds rate. Mixed economic conditions, slower economic growth in the 4th quarter and low inflation contributed to the decision against raising rates. The target federal funds rate was raised in December to a range of 0.25 to 1.59 percent after remaining at 0.00 to 0.25 percent for several years. While rising fed rates were expected to cause a hike in mortgage rates, mortgage rates fell after December's rate hike. Committee Cites Mixed Data in Decision While labor conditions…
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27 Jan 2016
By Mark Feder

Struggling to Get Approved Because of Your Income? 5 Reasons to Consider a FHA Loan

Home Mortgage Tips
Buying a home isn't cheap. But if you're determined to become a homeowner, the FHA home loan program can help. This loan program, ideal for first-time buyers with low incomes, can help you to build your credit and make home ownership a reality. So why should you consider an FHA loan? Here are just a few ways you'll benefit from these government-backed mortgages. You Can Get Approved With Just 3.5% Down Traditional mortgage lenders typically require you to pay 20% down on your mortgage, or 5% if you have good credit and agree to pay mortgage insurance premiums. But for…
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