There’s a lot happening in the latest finance news. Especially when it comes to real estate and mortgages.
Let’s dive into the top finance news today to see what the potential effects are behind the big headlines…
Nvidia Stock Performance
It seems like the entire stock market and US economy has been riding on the hopes of AI recently. Now the golden child of the NASDAQ, Nvidia seems to be showing cracks. Top investors are now turning bearish on the stock, with NVDA down 12% in the past month according to the latest stock market news headlines.
This may be just the wake up call that investors need to return to disciplined and sensible investing in tangible assets like real estate. Which should in turn bolster the positions of property investors.
Is The New 50 Year Mortgage A Good Deal?
The current administration has floated extending mortgage terms to as long as 50 years!
While this would make the monthly payments much more affordable for young homebuyers, and create more positive cash flow for investors in the short term, there are potential downsides.
For one, this would likely support higher property prices, and interest rates, which may not create true affordability for retail home buyers.
Secondly, on a 50 year mortgage, borrowers would end up paying around double the interest, or an extra $400,000 in interest on the average priced home over the life of their loan. Effectively meaning they’ve paid for the home 3x over by the time they retire this debt.
What Is A Portable Mortgage?
One of the latest forms of exotic mortgage according to coverage by Yahoo Finance news is the Portable Mortgage.
The premise is that borrowers could reduce finance costs, by simply moving their mortgage debt from property to property when they buy and sell.
This could potentially save thousands of dollars in transactional costs. However, you had better check that fine print and all the rules before you sign up for one.
Is A New Fannie Mae IPO In The Works?
Bill Ackman just laid out his three step proposal for relisting Fannie Mae and Freddie Mac on the stock exchange.
This would follow the government considering all of the bail out money from 2008 satisfied, and open up public investment in the $400B behemoth, while giving institutional investors a huge opportunity to cash out.
Figure Home Equity Lines Of Credit
Figure boasts becoming the number one non bank source for HELOCs in the US.
They offer fast funding, online, with lines of credit from $15k to $750k. Worth looking into for your next home remodeling project or tapping into extra funds to renovate or maintain your rental properties.
Which States Are Eliminating Property Taxes?
Property taxes are a substantial cost for real estate investors. Many, if not most people now agree that property taxes have effectively changed homeownership into long term renting. Meaning you’ll never be free of payments, even when you pay off your mortgage.
Several states have been looking into how they can get rid of property taxes, including FL, OH, and TX.
In fact, in the latest finance news, Texas Governor Greg Abbott has declared property tax relief an emergency. However, while he has made a variety of efforts to offset taxes and cap them, he says that it is the local counties which are doing the taxing which need to stop, not the state.
Property Holding Costs Hit $16,000 Per Year
New data from Zillow shows holding costs for homeowners have been skyrocketing. Maintenance makes up the largest portion of this, with about $11,000 a year needed to maintain the average home.
Inflation in property taxes, utilities, and insurances isn’t helping either. With some cities seeing a 79% spike in insurance costs.
Check out more on how to manage the maintenance and profitability of your rental properties in 5 Points Property Management’s new education series for investors. The series of expert tips for investors will be featured on our brand new YouTube channel, which is set to launch in December 2025.