Mortgage shopping differs depending on whether you are single or part of a couple. Here are some things to keep in mind when trying to land a great rate.
Last December, the Federal Reserve raised interest rates for the first time in nearly a decade. While the Fed’s actions impact short-term rates, if you are in the market for a home, you may be wondering about the impact on mortgage rates, inventory and affordability.
You may be surprised (and pleased) to learn that the answer is: not much. The impact on home prices is expected to be very minimal, and interest rates are still much lower than average rates in past decades — which could make 2016 a good year for buying. In fact, a nominal rate increase translates to a very manageable cost. For example, an increase of 25 basis points on a 30-year fixed-rate mortgage loan of $250,000 raises the monthly mortgage payment by only $35.
For more information on what the higher Federal Reserve interest rates mean, this article provides further details.
It may sound counter-intuitive to you, but the rise in interest rates can be a good sign, as it’s often an indicator of an improving economy. Still, while you will continue to be driven by the usual reasons for buying a home — such as growing a family, proximity to work, needing to downsize if you are retiring and so on — you may opt for a less expensive home that fits more comfortably into your budget.
The bottom line to keep in mind is that, while interest rates are important to homebuyers, you also need to balance a potential mortgage payment with your overall financial situation. If you are ready to purchase, now may be the right time to buy due to low interest rates and relatively affordable homes.
Check out the full article for more information on down payment programs and other resources that can help your clients who are planning to purchase a home.
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One of the most precious assets that you are likely to possess as you progress through life is your home. Owning their own homes is something that most Americans strive for.
As of October 3, 2015, anyone purchasing property will get easier-to-understand disclosure papers for their mortgage.
Gone are the Good Faith Estimate, HUD-1 settlement statement, and 2 Truth in Lending Act disclosures. Those 4 documents are replaced by 2: the Loan Estimate and the Closing Disclosure.
As with any insurance purchase, it is important to evaluate coverage and research your options to find the best coverage for your dollar. Here are some tips from the National Association of Insurance Commissioners (NAIC) to help you save money on your homeowners insurance.
Interest rates have fallen so much, it may seem like a no brainer to refinance your home mortgage.
Nobody likes to take a call from the collections department. It doesn’t matter if the call is about a credit card, a utility bill, a bounced check or anything else that may be delinquent. Avoiding the issue may seem like a good strategy to those who really hate conflict, but it is usually the worst thing you can do. This is especially true when it comes to a mortgage.
Scammers are targeting people having trouble paying their mortgages. Some claim to be able to “rescue” homeowners from foreclosures, while others promise to modify your loan – for a fee. The Federal Trade Commission, the nation’s consumer protection agency, wants you to know how to avoid scams that could make your housing situation go from bad to worse.