
Mortgage and real estate news this week: Who can still refinance? Plus ways to pay for cars or home improvements
Mortgage rates reached 6 percent, and the Fed stepped up its strategy.
You need to understand what a conversion clause is. Here’s what to know.
A conversion clause is a provision that may appear in an adjustable-rate mortgage, allowing the loan to be changed to a fixed-interest rate loan, usually for an additional charge.
A conversion clause is a clause within an adjustable-rate mortgage loan that allows a borrower to switch from an adjustable-rate mortgage to a fixed-rate mortgage. A change like this is usually allowed at the end of the first adjustment period, if a conversion clause exists for that particular loan.
Most of the time, choosing to take advantage of this clause requires an additional charge or fee of some kind.
An adjustable-rate mortgage has an interest rate that can fluctuate over time, which means it may go up or down, depending on various factors. This compares to a fixed-rate loan, which has a set interest rate that won’t change over time and will remain the specific set amount for the duration of the loan’s repayment.
If you have a mortgage loan on your home that currently has an adjustable rate, but you run into a financial situation where an adjustable rate is too unpredictable, you may be able to change your rate to a fixed rate.
If your mortgage loan contract has a conversion clause, you will be able to request that your loan be switched from an adjustable rate to a fixed rate after paying a fee. This allows you to have an interest rate that remains the same for the duration of your loan, making managing payments and interest a lot easier and more predictable.
Are you planning on buying a new home and need mortgage loan information? Use this handy mortgage calculator to figure out how much your loan will be and what your annual interest rate will look like.
Mortgage rates reached 6 percent, and the Fed stepped up its strategy.
Mortgage rates retreated slightly this week.
It depends on your personal situation, goals and preferences.
A cash-out refi comes with advantages and disadvantages.
Here are the most and least expensive markets when it comes to closing costs.
Inflation is pushing mortgage rates higher.
Mortgage lenders typically require some funds to be in place before approving a loan.
Plan to stay in your house for 10 years or less? A 10/1 ARM may be a good choice.
Find out whether you qualify for grant money to fund home repairs.