The contours of the coronavirus pandemic recovery remain the mystery that looms over just about everything in the real estate and mortgage markets these days. Here’s what you need to know about the latest news.
1. Forbearance winds down
Millions of homeowners took advantage of forbearance protections under the CARES Act, but most of those borrowers saw that payment pause come to an end in the last few weeks. It’s unclear what happens now, and while experts have been saying a foreclosure wave is unlikely, uncertainty abounds over whether these loan holders will be able to resume payments.
2. Another cash workaround for homebuyers
Although the real estate market is cooling down slightly, it’s still extremely competitive and cash buyers continue to have an edge. Some companies like Better.com have new programs where they’ll make a cash offer and purchase a property on a buyer’s behalf, and then resell it to the intended resident with a mortgage.
3. Mortgage rates are on the move
It’s the moment everyone has been expecting. Mortgage rates continue their climb as things get back to a new normal. For borrowers, that means it’s time to lock in your rate or consider a refi if you haven’t already.
4. Best practices for mortgage document retention
Don’t skip this section just because it sounds boring! It’s actually very important to hold onto your mortgage documents for the life of your loan, and possibly longer. Since we know you have a house, we also are confident that you’ll have somewhere to store a small mountain of paperwork, and here’s what you should keep in mind about how you do it.
5. Fannie vs. Freddie
Fannie Mae and Freddie Mac are major mortgage servicers and key players in the industry. They’re two sides of the same coin in that they’re structured similarly, but they are not the same company. Click through to learn about what these two companies do.