Mortgage Year in Review: A Christmas Gift to Your Finances

PFG Mortgages - a year in review a gift for your finances

As the festive season approaches, it’s a time to reflect on the year that’s passed and set goals for the one ahead. Whether you’re a seasoned homeowner or just starting your mortgage journey, understanding the latest trends and strategies can help you make informed decisions that benefit your financial well-being.

Mortgage Rates Remain Low

One of the most significant developments in the mortgage market is the continued low interest rates. This is good news for borrowers, as it means they can secure more affordable mortgage payments. However, with rates expected to rise gradually in the coming years, it’s important to lock in a low rate while you can.

Hybrid Mortgages Gain Popularity

Hybrid mortgages, also known as adjustable-rate mortgages (ARMs), have become more popular as interest rates have remained low. These mortgages offer a fixed interest rate for a certain period, typically 5 or 7 years, followed by a variable rate that can fluctuate based on the market.

Prepayment Penalty Waivers Increase

More lenders are waiving prepayment penalties, which are fees charged for paying off a mortgage early. This flexibility allows borrowers to save money by refinancing when interest rates drop or when they have the opportunity to cash out equity.

Mortgage Debt Accumulation Slows

The pace of mortgage debt accumulation has slowed in recent years, as homebuyers have become more cautious about taking on large debt burdens. This trend is likely to continue, as borrowers focus on building their savings and improving their creditworthiness before making a major home purchase.

Advice for Homeowners

1. Monitor Your Loan Terms: Be sure to understand the terms of your mortgage, including the interest rate, payment schedule, and any prepayment penalties.

2. Make Extra Payments: Making additional mortgage payments, even small ones, can help you pay off your loan faster and save money on interest.

3. Consider Refinancing: If interest rates drop significantly, refinancing to a lower rate can save you money over time.

4. Build Your Emergency Fund: Unexpected expenses can disrupt your mortgage payment plan, so it’s crucial to have an emergency fund in place.

5. Protect Your Credit: Maintaining good credit will ensure you qualify for the most favorable mortgage rates and terms in the future.

Advice for First-Time Homebuyers

1. Save for a Down Payment: The larger your down payment, the lower your mortgage interest rate will be.

2. Shop Around for Lenders: Compare rates and terms from multiple lenders to find the best deal.

3. Consider FHA or VA Loans: These government-backed loans offer lower down payment requirements and may be suitable for first-time buyers.

4. Get Pre-Approved: Pre-approval shows sellers you’re serious about buying a home and can help you navigate the buying process more effectively.

5. Work with a Real Estate Agent: A knowledgeable real estate agent can guide you through the homebuying process and help you find the right property.


Mortgages are an important part of many people’s financial lives, and understanding the latest trends and strategies can help you make informed decisions that align with your long-term financial goals. As you approach the new year, take some time to review your mortgage options and make sure you’re on track to achieve your financial dreams. Happy holidays and a prosperous new year!

For all your mortgage needs don’t heistate to contact the team at PFG Mortgages our knowledge, at your service.

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