Borrowing money

Mortgage and real estate news this week

The escalating war in Ukraine has rattled the real estate market, and you might want to know how the experts are weighing. In the meantime, expand your knowledge on topics like acceleration clauses and home equity with the latest stories.

1. Yields have fallen — but are likely to rise again

As the market reacted to the Russia-Ukraine conflict, mortgage rates fell from 4.09% to 3.97%, according to Bankrate’s weekly survey of major lenders. Although rates may remain low in the near term due to market uncertainty, experts predict they will rise again as the shock subsides.

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2. Refinance rates are rising

Refinance rates for 30-year, 15-year and 10-year mortgages have increased over the past week. Experts predict that rates will continue to rise as the Fed prepares to contain inflation. Either way, you can save thousands of dollars on your refinance if you shop around and compare multiple offers.

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3. How to withdraw equity from your home

As American homes gain capital at an accelerating rate, you can take advantage of the value of your home through home equity loans, home equity lines of credit, or cash refinance. Leveraging the equity in your home gives you access to large sums of money with significantly lower interest rates than comparable sources, such as personal loans or credit cards.

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4. Build a new home with a VA construction loan

VA loans can be used to build or renovate a home. These loans have many advantages over conventional loans, including lower interest rates, better terms, and no down payment requirement. That said, you should be prepared for a lot of paperwork if you qualify to take advantage of this competitive financing option.

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5. What is an acceleration clause?

Almost all mortgage contracts contain an acceleration clause, which obliges you to pay in full the outstanding balance of your loan as well as the interest accumulated since your last payment. The clause protects the lender against default and can be triggered in circumstances such as multiple missed payments.

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