Weekly mortgage news recap for September 4, 2020

Good news for homebuyers: Mortgage rates are likely to remain low for years. See why, learn why now is a good time to buy mortgage points, and read more top mortgage stories from the past week.

In today’s world, things can change quickly when it comes to mortgage rates and more. Check out these top stories from The Ascent to stay updated.

Many homebuyers wonder how long will these record-low mortgage rates last? Last week, Federal Reserve Chairman Jerome H. Powell provided an important lead. Powell pointed out that the recovery from COVID-19 will be lengthy, so the Fed will likely keep policy rates near 0%. While the Fed doesn’t control mortgage rates, its decisions influence policy. If the Federal Reserve keeps the overnight rate at which banks borrow from each other at its lowest point, it suggests that mortgage rates should stay low for a long time.

Mortgage points cost 1% of the value of your home loan and reduce the interest rate by 0.25%. It makes sense to buy them if you will be staying in your home long enough (and not refinancing long enough) for the savings from your discounted plan to cover the upfront cost of the point. With mortgage rates so low right now, it is unlikely that most homebuyers will refinance or prepay their mortgage anytime soon.

Would-be homeowners who cannot raise the money to buy a house have other options, such as buying a condo, buying a house with a friend or family member, or buying a house and renting part of it. With mortgage rates near record lows, now may be a better time than ever to consider some of these options.

House prices vary in different parts of the country. Check out the 10 cheapest states – including West Virginia and Indiana – where your dollar will go a lot further. If you live in one of them, you might be in luck if you want to become a homeowner but don’t have a huge budget to work with.

While some places offer a bargain for aspiring homeowners, property prices are so high in others that it can be difficult for the average person to get the cost back. This list of the 10 states that are the most expensive to buy a home has a few places you would expect, such as California, but also some surprises.

Refinancing is a hot topic these days as millions of homeowners take advantage of record low interest rates to refinance and lower their monthly payments or overall interest costs. When calculating the savings, remember to take into account both how much you will save on your payment and how much you will save in the long run. These instructions will help you with the calculation.

Whether you’re looking for a new home or looking to refinance a mortgage, be sure to check out The Ascent Mortgage Cover. We’ll keep you updated on everything you need to know during your trip so that you can make informed decisions and keep your borrowing costs affordable.

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