Blog – Page 245 of 790 – Fred Gruber - First Rate Financial Group

18

May

Mortgage Rates

3 Reasons Why the Lowest Mortgage Interest Rate Isn’t Always Your Best Option

3 Reasons Why the Lowest Mortgage Interest Rate Isn't Always Your Best Option One of the more common methods that home loan applicants use to find the best loan program available is to compare interest rates, but choosing the lowest rate possible is not always the best option available. In fact, in some cases, it may be one of the least advantageous options when all factors are considered. With a closer look, home mortgage applicants may decide to review other factors in combination with the interest rate to make a more informed decision when applying for a new loan.

The Closing Costs Impact The Rate

It is important to note that lenders can increase or decrease the interest rate with adjustments to closing costs, and this means that some of the lowest interest rates available may also have some of the higher closing costs. In some situations, choosing the lowest interest and paying more in closing costs is acceptable. However, a loan applicant should be aware of this and should compare interest rates along with closing costs in order to find the best loan program available.

The Loan Term Affects The Rate

Generally, a shorter loan term will have a lower interest rate. However, even with the lower interest rate, the mortgage payment may be higher due to the shorter term. A higher mortgage payment can impact affordability as well as loan qualification in some cases, and there are instances when the higher interest rate associated with a longer term is most desirable.

The Interest Rate May Adjust

Adjustable rate mortgages typically have lower interest rates than fixed rate mortgages, but the interest rate with an ARM may adjust higher in the future. For those who only plan to own the home or to retain the mortgage for a short period of time, this may be acceptable and even desirable. However, for those who plan to own the home or retain the mortgage for a longer period of time, the potential for a rate adjustment in the future may not be preferable.

For individuals who are shopping around to compare interest rates and to find the best deal on a mortgage, there may be a desire to opt for the lowest interest rate, but this is not always the best strategy. The interest rate can reflect many aspects of the loan, and each of these points should be analyzed to find the best loan program. A mortgage broker can provide assistance comparing loan terms and helping loan applicants determine which is the best solution for their needs.

17

May

By First Rate Financial Group

Financial Reports

What’s Ahead For Mortgage Rates This Week – May 17, 2021

What's Ahead For Mortgage Rates This Week - May 17, 2021 Last week’s economic reports included readings on inflation, core inflation, and the University of Michigan’s Consumer Sentiment Index. Weekly readings on mortgage rates and jobless claims were also released.

April Inflation Rate Hits 13-Year High

The federal government’s Consumer Price Index rose by 0.80 percent in April as compared to the March reading of 0.60 percent. Analysts expected inflation to increase by 0.20 percent in April. Core inflation, which excludes volatile food and fuel sectors, rose by 0.90 percent in April. Analysts expected core inflation to grow by 0.30 percent in April which would have been unchanged from the March reading of 0.30 percent Core inflation rose month-to-month at the fastest pace in forty years and grew by three percent year-over-year, which was the highest growth rate since September 2008.

Consumer gas prices surpassed $3.00 per gallon for the first time since 2014; last week’s shutdown of Colonial Pipeline’s main transmission line was expected to drive gasoline prices higher. Prices of used cars and trucks rose 10 percent in April and contributed to a 21 percent increase in used vehicle prices year-over-year. Costs for shelter rose 2.10 percent year-over-year and were 0.0 percent higher month to month. Analysts noted that high inflation rates are caused in part by the low pace of inflation reported during the pandemic. Inflation Growth percentages are higher than they would have been if inflation had not slowed during the pandemic.

Mortgage Rates, Jobless Claims, and Consumer Sentiment Fall

Freddie Mac reported lower average mortgage rates last week. Rates for 30-year fixed-rate mortgages averaged 2.94 percent and were two basis points lower. Rates for 15-year fixed-rate mortgages averaged 2.26 percent and were four basis points lower; the average rate for 5/1 adjustable rate mortgages dropped by 11 basis points to 2.59 percent. Discount points averaged 0.70 percent, 0.60 percent, and 0.30 percent respectively.

First-time jobless claims were lower last week with 473,000 initial claims filed as compared to the prior week’s reading of 507,000 new jobless claims filed. Continuing jobless claims were also lower with 3.66 million ongoing claims filed; 3.70 million continuing jobless claims were filed in the prior week. The University of Michigan’s Consumer Sentiment Index reading was lower in May with a reading of 82.8 as compared to the expected reading of 90.1 and April’s index reading of 88.3.

What’s Ahead

This week’s scheduled economic news includes readings from the National Association of Home Builders on housing markets, data on sales of previously-owned homes, and Commerce Department readings on housing starts and building permits issued. Minutes of the Fed’s most recent Federal Open Market Committee meeting will be released along with weekly readings on mortgage rates and jobless claims

14

May

By First Rate Financial Group

Home Buyer Tips

Avoiding Home Buyer Remorse: 5 Tips for a Happier Homeowner

Avoiding Home Buyer Remorse: 5 Tips for a Happier Homeowner The rush of excitement that comes with finding the home you’ve been looking for is ideal, but just because it seems like the perfect place, doesn’t mean there aren’t other factors to consider. Instead of getting hit with buyer’s remorse, here are some tips so that your home purchase doesn’t become something you’ll regret.

Forget About The Competition

If you’re contemplating a house and happen to be dragged into a bidding war, it’s important to take a step back and determine if it’s really the right home for you. It can be easy to get carried away and up your offer, but make sure you determine what the home is really worth to you.

Take A Second Look

If you’ve been to a lot of home viewings and have finally found a place you feel good about, it can be easy to overlook the minor details. Instead of trusting your memory, make sure you visit the home a couple of times before putting in an offer so you’ll be aware of any major flaws you might have missed the first time around.

Visit The Neighborhood

The instant appeal of a home that seems perfect for your family can be unexpected, but it’s worth considering the neighborhood you’re going to be living in to ensure it’s livable. A home is one thing, but local amenities and an area your family feels comfortable will come to be equally important.

Avoid A Fixer-Upper

The kind of home you can fix up might make for a fun project for the DIY person, but biting off more than you can chew in an effort to save can be a mistake. A few small renovations may not be a big issue, but a home that needs a lot of changes will likely end up being more of a burden once the deal is sealed.

Stick To Your Purchase Price

Many people get so overwhelmed when they find a unique place to settle that their price point flies out the window. However, instead of making allowances for a purchase price you can’t really swing, keep what’s affordable in mind and be sure you don’t veer too far above it.

It can be exciting to find the kind of home you’re looking for in a center you love, but it’s important to pay a price that’s affordable and get the home you really want. Contact your local mortgage professional for more information.