Interest Rates

Comments Off on Not Available for All Buyers

Not Available for All Buyers

Not Available for All Buyers

Lenders regularly publish mortgage rates but they may not be available for all buyers. Imagine that the mortgage payment based on an advertised rate influenced a buyer to make an offer on a home. After negotiating a binding contract, this buyer makes a loan application and finds out that for any number of possible reasons, … Continued

Comments Off on A Lower Payment Is Your Choice

A Lower Payment Is Your Choice

A Lower Payment Is Your Choice

94% of purchasers last year opted for a fixed-rate mortgage at some of the lowest rates in home buying history. Yet, some of them will pay more in interest than necessary based on the time they’ll own the home. If a person only plans to be in the home a few years, the adjustable-rate can … Continued

Comments Off on Equity Dynamics

Equity Dynamics

Equity Dynamics

Equity is the difference in what your home is worth and what you owe. Ideally, as the value goes up and the unpaid balance goes down with each amortized payment made, the equity grows from two directions. This dynamic leads to increasing a person’s net worth much faster than many other investments. A homeowner has … Continued

Comments Off on It Can’t Hurt to Wait, Can It?

It Can’t Hurt to Wait, Can It?

It Can’t Hurt to Wait, Can It?

It’s been said that more money has been lost due to indecision than was ever lost because of a bad decision. Regardless of whether you agree with the statement, delaying the decision to buy in today’s market is going to cost the buyer more. Home prices have gone up considerably in almost every market in … Continued

Comments Off on When Rates Rise

When Rates Rise

When Rates Rise

Rising interest rates are great if you are renewing a certificate of deposit but not so much when you’re borrowing money. With interest rates on the rise as well as home prices, housing affordability is a concern for would-be homeowners. A rough rule of thumb is that a person’s or family’s housing should not exceed … Continued

Comments Off on Assumable Mortgages: Advantages to Buyer & Seller

Assumable Mortgages: Advantages to Buyer & Seller

Assumable Mortgages: Advantages to Buyer & Seller

Here are some of the advantages of assuming an existing mortgage versus applying for a new one: Mortgage is further into amortization schedule Lower interest rate loans amortize faster than higher interest rate loans Lower closing costs than a new mortgage Easier to qualify than on a new mortgage No appraisal required There could also … Continued

Comments Off on Mortgage Interest Rates: Where Are They Headed?

Mortgage Interest Rates: Where Are They Headed?

Mortgage Interest Rates: Where Are They Headed?

Today’s $20,000 question is…Where are mortgage rates headed in the near future? Most believe the rapid rise in rates experienced over the last month will not be sustained and that they will level off into a range between 4% and 5%. When recently asked, Zillow’s director of Mortgage Marketplace, Erin Lantz suggested: “It is impossible … Continued