Blog – Page 704 of 933 – Fred Gruber - First Rate Financial Group

15

Feb

Home Mortgage Tips

4 Misconceptions About Reverse Mortgages — and Why You May Decide You Want One

4 Misconceptions About Reverse Mortgages -- and Why You May Decide You Want One With so many mortgage products available on the market, it can be hard to know which ones will serve you best as a homeowner. As a result, there are many mistruths surrounding the reverse mortgage products. If you’ve heard of this homeownership option and are wondering what it can do for you, let’s clear away some of the misconceptions.

You Must Own Your Home

It can certainly be helpful to own your home outright if you’re looking into a reverse mortgage, but it’s not actually necessary. Instead, it’s important for you to have a high amount of equity in your home so that lenders can be sure that you’re a solid financial bet. While the balance you should have on your home varies based on a number of conditions, it’s important to talk to your lender for the specific details involved.

Few Conditions Apply

You may have heard that any homeowner who acquires a reverse mortgage must be 62 years of age or older, but because a reverse mortgage is a mortgage product, there are a number of requirements involved in order to apply. In addition to having enough equity in your home, it must be your primary residence and you will have to prove that you can pay the property taxes, insurance charges and any maintenance costs consistently.

Home Ownership Is Relinquished

Due to the nature of reverse mortgages, many people believe that this type of loan gives the bank ownership of your home. However, the homeowner retains ownership because they are borrowing money against the value of the equity in their home. This means that as long as the payments on the home are maintained, the home will continue to belong to the homeowner.

Expensive Loan Fees

While reverse mortgages can come with more expensive rates because the monthly payments are deferred, it’s important to talk to a mortgage lender about these details to determine what they’ll mean for you. The associated fees will depend on the price of your home, your loan type and your interest rate, so you’ll need to be aware of what the costs are to you before moving forward.

There is a lot of information out there regarding reverse mortgages, but it’s important to do the research so you can be aware of how this product can benefit you. If you’re currently considering this type of mortgage, contact your trusted mortgage professionals for more information.

14

Feb

By support

Home Buyer Tips

Buyer’s Remorse: 3 Things You Should Never Say When You’re Negotiating to Buy a Home

Buyer's Remorse: 3 Things You Should Never Say When You're Negotiating to Buy a Home The prospect of finding the home you’ve always dreamed of can be such an exciting prospect that it’s easy to forget all about the process of negotiating. However, it’s important to keep a few things to yourself when it comes to the art of making the deal. If you’re currently searching for the right place and are preparing to sign on the dotted line, here are a few phrases it’s best to avoid.

Declaring It Your Dream Home

There’s nothing wrong with finding the ideal home and getting enthusiastic about the prospect of owning it, but it’s very important not to say too much to the homeowner or the homeowner’s agent. While it’s certainly welcome to be a polite home viewer and mention some of the features you like, giving away too much will inform the homeowner of just how much leverage they have with you. This can mean they may request a higher price since they know how interested you are.

What You’re Willing To Pay

It might seem up front and honest to declare the price range that you’re willing to spend on a home, but if a homeowner knows what your limitations are, they’ll likely push you past them. While you may be willing to pay more for a home you truly love, it’s important that you’re investing a reasonable amount into the home and not paying much over market value for your property. Instead of being too forward, keep your offer to yourself until it’s on the table.

Critiquing Their Price Point

If you’re truly interested in a home, it can be pretty difficult to realize that it’s not within your price range. However, it’s unnecessary to mention this to the buyer as it’s entirely possible that the price is comparable to other homes of a similar style in the neighborhood. After all, there’s always a chance that the home will stay on the market and drop down in value, and this may be the point at which you can get your foot in the door.

When it comes to buying a home, the process of negotiating can be fraught with stress for many people. However, it’s important to keep your price range and your impressions to yourself so that you can get the best deal possible.

13

Feb

By support

Mortgage Rates

What’s Ahead For Mortgage Rates This Week – February 13, 2017

Last week’s scheduled economic readings were limited and included new jobless claims and Freddie Mac’s mortgage rates survey. In other news, all types of mortgage applications rose by 2.30 percent this week as compared to the prior week.

Mortgage Rates Lower, Home Loan Applications Rise

Freddie Mac reported lower mortgage rates for fixed rate and 5/1 adjustable mortgages; the average rate for 30-year fixed rate mortgages dropped two basis points to 4.17 percent. Average rates for 15-year mortgages also dropped two basis points to 3.39 percent. 5/1 adjustable mortgage rates averaged 3.21 percent, which was also two basis points lower than the previous week. Discount points averaged 0.40 percent for the three types of mortgages tracked in Freddie Mac’s weekly Primary Mortgage Market Survey.

According to the Mortgage Bankers Association, this small drop in mortgage rates caused all types of mortgage applications to rise by 2.30 percent on a seasonally-adjusted basis. Refinance applications rose two percent from the prior week, but remain 40 percent lower year-over-year. The dearth of refinancing applications was caused by two factors including many refinances were completed recently when rates were lower and homeowners currently discouraged by higher mortgage rates.

Weekly Jobless Claims Fall

Last week’s initial jobless claims fell to 234,000 as compared to expectations of 249,000 new claims and the prior week’s reading of 246,000 new claims. This was the lowest reading since 1973 and when compared to the benchmark of 300,000 new claims, shows that the economy continues to strengthen. Last week’s reading was the second lowest since recovery from the recession got underway in 2009 and represented the 101^st consecutive week that new jobless claims were lower than the 300,000 new claims benchmark. According to Labor Department data, this week’s reading sustained the longest-running consecutive period of new jobless claims below the benchmark level.

The four-week average of new jobless claims is viewed by analysts as less volatile than the week-to-week reading, but it showed similar results last week as it fell by 3750 new claims to 244,250 initial claims and reached the lowest level of new claims filed in 44 years.

What‘s Ahead

Next week’s scheduled economic releases include readings on inflation and core inflation, the National Association of Home Builders Housing Market Index and Commerce Department reports on housing starts and building permits issued.