Blog – Page 715 of 893 – Fred Gruber - First Rate Financial Group

06

Jul

Home Mortgage Tips

The 4 Most Common Mortgage Questions, Answered

The 4 Most Common Mortgage Questions, Answered Making the decision to purchase a home is one of the most significant investments most people will make in their life, and this automatically means there are a lot of questions that need to be answered before putting any money down. If you’re considering making the leap, here are some insights into some of the common questions you might have.

How Much Should You Put Down?

While many homebuyers have the option of putting as little as 3% down in order to purchase a home, there are benefits to saving up for a down payment and putting in 15 or 20%. Because your interest rate will be higher on a lower down payment, putting more down can mean a lower overall price tag and monthly payment.

Fixed or Variable Rate Mortgage?

While a fixed rate mortgage can be good for homeowners who are new to the market due to its stability, a variable rate can be hard to rely on because it can change all of the time. Fixed rates can end up costing more than variable rates in the event of low interest rates, but it’s important to determine your comfort level with the market is before deciding on your mortgage type.

How Will The Lender Assess You?

There are a number of different factors that lenders will assess you on including your income, personal debt load, employment and credit history. While it’s important to be in the good books for these reasons, a lower credit score does not mean you will not be able to qualify for a mortgage; it simply means that you may need to provide a higher down payment.

What Will The Monthly Payment Be?

One of the conundrums of home ownership is being able to determine what you’ll actually be paying per month to purchase your home, but this number is dependent on the size of your mortgage, your interest rate, and the frequency of your payments. There are also many handy online tools you can use to provide some estimates but it’s best that you consult your mortgage specialist about this.

Most homeowners, particularly those that are new to home ownership, have many questions when it comes to purchasing a home, but by being aware of what a lender looks at and what you should put down, you’re well on your way to a healthy attitude towards ownership. If you’re currently considering buying a home, contact your local mortgage professional for more information.

05

Jul

By support

Mortgage Rates

What’s Ahead For Mortgage Rates This Week – July 5, 2016

Closing Paperwork: How to Read and Understand the Truth-in-Lending Disclosure Statement Last week’s economic events included S&P Case-Shiller’s Housing Market Indices for April along with reports on Construction Spending and Pending Home Sales. Consumer Confidence was higher in June in spite of low wage growth and inflation well below the Fed’s goal of 2.00 percent annually.

S&P Case-Shiller: Home Price Growth Ticks Downward

April home values grew by 5.40 percent in April on a seasonally-adjusted annual basis. Case Shiller reported a drop in momentum from the March reading of 5.50 percent according to the S&P Case-Shiller 20-City Home Price Index. While no city included in the 20-City Index reported lower home values, the rate of growth appears to be slowing. High home prices driven by high demand and slim inventories of available homes may continue to lose steam as high home prices coupled with stricter mortgage requirements sideline first-time and moderate income buyers.

Pending home sales in May saw their first decline since August 2015 According to the National Association of Realtors®, Pending sales dropped from April’s downwardly revised index reading of 115.0 to 110.8. Pending home sales were -3.70 percent lower in May as compared to April’s reading of +3.90 percent. The drop in pending sales, which represents homes under contract that are not yet closed, is largely blamed on markedly low inventories of homes for sale in many areas.

Construction spending was higher in May, but remained in negative territory with a reading of -0.80 percent as compared to expectations of +0.50 percent and April’s reading of -2.00 percent. While the overall reading appears unremarkable, residential construction spending was 5.30 percent higher in May.

Mortgage Rates Lower, Jobless Claims Rise

Freddie Mac reported lower mortgage rates in the aftermath of Great Britain’s vote to leave the EU. Rates for a 30-year fixed rate mortgage averaged 3.48 percent.15-year mortgage rates averaged 2.78 percent and the average rate for 5/1 adjustable rate mortgages was 2.70 percent. Discount points were also lower at 0.50, 0.40 and 0.50 percent respectively.

Jobless reports jumped due to the end of the school year; New York State in particular allows some workers to file jobless claims when schools are closed. 268,000 new jobless claims were filed as compared to expectations of 265,000 new claims and the prior week’s reading of 258,000 new claims.

Consumer confidence rose in June, but consumers were surveyed before the Brexit vote. Consumer confidence increased to 98.0 in June as compared to May’s index reading of 92.40.Stronger job markets and stabilized gas prices were seen as contributing factors that boosted consumer confidence.

What’s Ahead

Next week’s scheduled economic reports include several labor-related reports including Non-Farm Payrolls, ADP Payrolls, June’s national unemployment rate and minutes of the Fed’s last FOMC meeting. Freddie Mac’s survey of mortgage rates and weekly jobless claims will also be released.

01

Jul

By support

Home Mortgage Tips

Pay Off Your Home Faster with These Mortgage Tips

Pay Off Your Home Faster with These Mortgage Tips The monthly mortgage payment that goes into purchasing a home is frequently the most expensive cost per month that most people will incur, and that means that it can be helpful to know the tricks of the trade in squaring away this payment more quickly. If you’re looking for some simple tips to get your mortgage paid off a little sooner, here are some pointers that will help you get to this goal.

Make Bi-Weekly Payments

It may seems like enough of an expenditure to pay your mortgage once a month, but making payments every two weeks can actually greatly reduce the amount of interest you’ll end up paying. For example, if your monthly payment happens to be $400, this would equate to $4800.00 in payments for the year. However, if you pay bi-weekly, this will actually increase your payment per year to $5200.00. While it may not seem like a significant difference, this can break down the principal and save you a lot of money on interest

Pay It Off With Extra Funds

It can be so easy to get used to the standard payment schedule that putting extra money down just seems like a burden, but if you receive an inheritance, a raise or get a bonus at work, you may want to consider putting this extra money towards your mortgage instead of a splurge! While smaller monthly payments will decrease your mortgage over time, a lump sum can help you see the difference in your monthly payment right away, which is a boon for paying it down further.

Keep Up-To-Date On Your Mortgage Options

Many people would rather forget about their mortgage and stick to what they’ve worked out when all’s said and done, but it’s a good idea to keep abreast of what’s happening on the market in case it can positively impact your mortgage. By keeping up to date on interest rates and more recent mortgage options, you may be able to negotiate a better deal or at least stay on top of your monthly payments in the event of an interest rate increase.

The monthly mortgage payment schedule can be a bit of a burden for many people, but there are ways to pay off your mortgage more quickly that can easily improve your sense of financial wellbeing. Contact your local mortgage professional for more information.