Week-End Review 10/14/22

Given the current climate conditions we could wallow in the negativity of inflation, recession, increasing mortgage rates, increasing FED rates, 10 year yield… The list goes on; however, we must remember that the mortgage industry comes in cycles like the waves of an ocean. We have to keep our heads up and work much harder for our clients not just now, but in the future!

Since the MBS (mortgage- backed securities) and home mortgage markets cycle, we have the opportunity to offer refinance options for our clients down the road. Especially given the fact that right now clients are locking in at interest rates above 7%!!!

With market volatility the way it is, it makes sense to lock any willing client as soon as possible. Don’t take the risk of rates possibly dropping. Trends show all too well that rates are rising, but this too shall pass!

So, what are our options if we can’t do a cash-out refi for say home repairs or betterments and improvements? There is the HELOC or Home Equity Line of Credit.

What is a HELOC? It is a line of credit borrowed against the available equity of your home which is the difference between the appraised value of your home and your current mortgage balance. It gives you a revolving credit line. HELOC’s often have a lower interest rate than most other personal lines of credit and is tax deductible. HELOC’s are typically variable, but principle fluctuates depending on how much you draw.

As a mortgage broker, Coastal Mortgage Solutions is able to offer quite a few mortgage loan products for our clients. Please don’t hesitate to reach out to us to discuss the many options we have available.