• A benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.
• A forward-looking average rate, computed daily, at which a contributor bank can obtain unsecured financing in the London interbank market, in a process overseen by the ICE Benchmark Administration (IBA). Based partially on market-data “expert judgment”.
• Based on 5 currencies: the U.S. Dollar, Euro, British Pound, Japanese Yen and Swiss Franc.
• Incorporates a built-in credit-risk component because it represents the average cost of borrowing by a bank.
• LIBOR has 7 varying rates on terms of one day to one year.
• LIBOR is a critical component of the financial system, hardwired into not only global derivatives but also business loans, securitizations, floating rate notes, adjustable mortgages, and student loans.

• Unlike LIBOR, SOFR is a secured overnight (backward looking), risk-free rate based on actual transactions collateralized by Treasurys.
• It is an influential interest rate that banks use to price U.S. dollar-denominated derivations and loans.  
• Purely a daily rate.
• Seen as preferable to LIBOR since it is based on data from observable transactions rather than on estimated borrowing rates. Also, because these transactions can be observed by anyone, it’s also less easily manipulated.

• Some adjustable (or variable) rate loans and lines of credit like adjustable-rate mortgages (ARMs)
• Reverse mortgages
• Home equity lines of credit
• Credit cards
• Auto loans
• Student loans
• And any other personal loans

In mid-August, Fannie Mae and Freddie Mac imposed an “adverse market conditions”  fee on conventional refinance transactions equal to one-half of one percent of the loan amount causing an industry uproar and spike in rates.

Last week, they offered a short reprieve by delaying the fee until December 1st. However, this fee will likely begin to impact refi rates well before since lenders cannot be certain if a loan will be delivered before the deadline.

Rates are currently near all-time lows but will trend higher as the deadline nears. It is imperative to start the process as soon as possible and get your file in queue before volume leads to longer turn-times.

If you are interested in saving money each month; accessing cash from your home’s equity for any reason; or shortening your loan term, please reach out as soon as possible to discuss your scenario. 

December may seem far away, but a lot of interested homeowners are likely to pursue a refinance before the fee increase, and the sheer volume may lead to delays. It’s wise to get started now.

Staying at home doesn’t mean your search for a new place needs to come to a standstill. Check out these tips on how to explore other neighborhoods virtually in the homebuying process. You may find a spot that better suits your needs without ever leaving your living room!

#1 - Check out neighborhood publications and local social media

An active neighborhood community will sometimes have a print publication or local social media groups that connect residents. These can provide information on local events and activities that will give you a better feel for the neighborhood. In addition, you can also browse Facebook, Twitter, and Instagram for groups or accounts that document what's going on in the neighborhood where you're interested in moving. Try interacting with locals in the community who can give you their opinions of their locale.

#2 - Take a Walk with Google

Stroll around your potential new neighborhood without leaving the couch! It's easy. Google street view is a great way to view the street and neighborhood virtually. You can access Google Street View by clicking here. Each listing on realtor.com features a link to the Google Street view for that address as well. 

#3 - Browse Websites with Neighborhood Data

Gather as much information as you can on your next neighborhood. There are many websites that can help you! City-Data provides detailed city profiles about everything from cost of living to weather to average home prices. Plug in your ZIP code to AreaVibes to get a livability score. This will he you narrow down the best places to live. Yelp provides not only reviews on local cafes, restaurants, and nightlife, but also unfiltered reviews from local residents.

#4 - Search other Real Estate Listings 

If you want to learn about the typical architectural styles and ages of home in a neighborhood, browse online listings on sites like realtor.com. 

#5 - Call a Real Estate Agent

A real estate agent can help by using technology to test-drive the neighborhood for you. Once you've found a home you're interested in, get in touch with your agent for more information on the neighborhood. They will have a insider's perspective on the area and knowledge on home there too. 

#6 - Investigate Schools & Educational Data 

Areas with good schools typically maintain property values, and its neighborhoods are high coveted. 

#7 - Check Crime Rates

Safety is a priority for both buyers and renters, and crime rates can give you a picture of how safe or dangerous a neighborhood is. Low crime rates are not only safer but can also help keep property values high.

8- Plan Daily Commute

Get a feel for the neighborhood by monitoring traffic and your work commute. You can use tools like Waze or Google Maps which will help predict the level of traffic during your commute hours. 

A real estate professional can help you with all of the additional steps along the way, so you’re ready to make your next move. Be sure to get in touch with Greenway Mortgage for all your home financing needs.

Your credit is one of the most important items when it comes to your financial health. Even in the best of the times, maintaining healthy credit can be an overwhelming task, let alone during the economic uncertainties related to the COVID-19 pandemic.

What can you do to protect your credit in the months to come? Keep reading to learn what you can do on your own to prepare.

• How long will my arrangements last?
• Can it be renewed?
• Will interest continue to accrue on your account?

What Steps Can I take To Avoid Falling into Debt During COVID-19?

 

Use Credit But Only If You Need To

There are some factors that could cause your credit score to drop. For instance, if you need to use credit to get by, a decrease shouldn’t be a surprise.  In addition, if you happen to pause payments on your accounts but still need to use credit to pay bills and buy essentials, your credit utilization ratio is likely to increase. In turn, this could lower your credit score.

 

Budgeting

Budgeting is helpful to keep credit card debt down, where possible. Take a look at how much you’re making and what you’re spending. Identify places where you may be able to trim usual costs. Come up with a plan to pay off debts after the pandemic is over. Eventually, your score will go back up. Remember, don’t overuse your credit; use it for things you need the most.

 

Call your Lenders/Creditors

Like we mentioned earlier, talk to your lenders and creditors to discuss any and all options. 

 

Pay What You Can

Ideally, you’ll pay your credit card bill in full every month. If credit cards aren’t paid in full every month, added interest payments can prolong debt. If you’re not able to pay in full, then aim to pay whatever you can, at least the minimum payment if possible. Not making a payment at all could further impact your credit standing.

 

Use Your Stimulus Check

For those qualify, you could use this check to pay your monthly payments, pay down your debt, or use the money to cover your day-t0-day essentials so you don’t need to use revolving credit accounts which increase the amount of debt you now.

 

Be Wary of Scams

Be alert when receiving strange phone calls, emails and text messages. If something doesn’t look right, don’t open it. If you receive a message regarding a financial account, it’s best not to click on any links or give out your personal information. Look on the back of your billing statement or card for a customer service number where you can call to ask about the message you received. They will be able to tell you if it was indeed legitimate and they will be able to provide more information.  

 

You can also help protect your identity by going to trusted sources for information. Experian has a list of coronavirus customer service links for financial institutions, and TransUnion offers a directory of additional services you may be looking for at this time. If you’re applying for unemployment, make sure you’re accessing the legitimate unemployment application for your state by going through benefits.gov, which has a state directory.

 

Falling victim to a scam can have long-term implications for your credit and can even result in identity theft. Learn more about the most common types of scams and what you can do to protect yourself here.

 

Bottom Line:

Ask for help if you need it, pay what you can, stay up-to-date on your credit reports, and watch out for scammers during the COVID-19 pandemic.

 

We understand the COVID-19 pandemic has caused a lot of uncertainty about the future. To help you find the most accurate information as it relates to your mortgage, personal finances, the home buying process, and more, visit our Incident Resource Center here.