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Alternative Mortgage Lenders are Changing the Marketplace
 Alternative mortgage lenders include online lenders and non-bank lenders. They’re shifting the real estate marketplace and making it much simpler and easier for consumers to get a mortgage. So what should you know?
There are three main categories that alternative mortgage lenders tend to fall into.
There are online mortgage lenders, which work to add transparency and efficiency to the home loan process. They simplify and shorten the timeline.
There are marketplaces that help borrowers as they’re comparing rates and shopping around for mortgages.
Then, there are non-bank
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Mortgage Rates
U.S. averages as of January 2021:
30 yr. fixed: 2.66%
15 yr. fixed: 2.19%
5/1 yr. adj: 2.79%
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lenders that tend to market their services to borrowers with less-than-perfect credit.
Alternative Online Lenders
Mortgage originators that serve as
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Get The Home You Want, Millennials: Smart Strategies For First-Time Homebuyers
 Hey, Millennials. Come on into the real estate market! We really need you to buy some homes so we can keep chugging along. Oh, wait. Prices are rising and so are interest rates, plus inventory is scary low. Hmmm. Well, come on in anyway, wontcha?
It's not easy to buy a home in a hot market where inventory remains at historic lows - and that covers a lot of areas across the country at a wide range of different price points. But it's especially hard right now for Millennials, who aren't exactly getting a warm welcome from the market that has been begging them to participate.
"I think it's fair to say this is the most competitive housing market we've seen in recorded history," Danielle Hale, chief economist for
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Doing the Refinance Math
 Wondering whether or not to refinance an existing mortgage typically means running some numbers. You can do this on your own but it’s probably better to talk to a loan officer and get some assistance. It really all boils down to how much you’ll save each month compared to what you’re paying now. But there are other considerations.
First, pay less attention to the change in rate. Old school myths say that it’s a good idea to refinance if current market rates are 1% or 2% lower than what you currently have. But the rate is only a part of it. The other component is the amount being financed. For larger loan amounts, maybe a reduction of only 0.5% makes sense.
For smaller loan amounts, 2% may not be enough. Instead, calculate the monthly savings and then divide that amount into the closing costs associated with the mortgage. The result is how many months it will take to ‘recover’ the closing costs in
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The Law Offices of Fred Peet
55 Patchen Road
South Burlington, VT 05403
802-860-4767
800-683-3903 (toll free)
802-860-2822 (fax)
fpeet@peetlaw.com
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Meet Our Real Estate Law Team
Attorneys:
Fred V. Peet
Richard C. Maxson
Christopher M. Perra
Kevin J. Shortell
Paula LeBlanc
William Flender
Eric Derry
Paralegals/Legal Assistants:
Doreen Guthrie
Sherry Morin Barton
Amy Benway
David MacPeek
Shawn A. Nelson
Karen Eddy
Elise Martin
Marcy Brigham
Joe Tomlinson
Sheri Slack
Linnea Oosterman
Closing Coordinators:
Katy Baker
Laura Martin
Daily News and Advice
Read about the events shaping the Real Estate market today, find current interest rates, or browse the extensive library of advice and how-to articles written by some of the top experts in Real Estate. Updated each weekday.
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