Blog – Page 797 of 888 – Fred Gruber - First Rate Financial Group

23

Jun

Home Mortgage Tips

Four Surefire Ways to Ensure That You Get the Best Possible Deal on Your Mortgage

Four Surefire Ways to Ensure That You Get the Best Possible Deal on Your Mortgage Taking time to set up your home mortgage is one of the best steps that you can take to promote financial health and security. The best home mortgage is one with an affordable payment, that does not empty your bank accounts of necessary financial reserves and that will help you to establish equity at a fast pace. If you want to ensure that you get the best deal on your mortgage focus on these tips.

Consider the Loan Term Carefully

The most common loan term options are a 15, 20 and 30 year term. There will be a slight interest rate difference between these options, but the term itself will play a critical role in how quickly your equity increases as well as what your mortgage payment is. The payment should be affordable, and you do not want to set up a payment that is so high that you run the risk of defaulting. However, a shorter term with a higher monthly payment can result in less interest charges and faster debt reduction.

Think About the Pros and Cons of a Larger Down Payment

The amount of your down payment is also critical to setting up the right mortgage. When you make a larger down payment, you will have lower payments and may even qualify for a better rate. However, you also may be tying up your extra funds that could be used for investments or for debt reduction into your mortgage.

Shop For the Best Interest Rate

The interest rate variation from lender to lender may be fairly minimal when factors like the down payment, the term and your credit rating are constant. However, even a quarter or a half-percent difference in the interest rate will impact your payment amount and equity growth significantly. It can also impact your interest charge for your annual tax deduction.

Review the Closing Costs

A final point to consider is the closing costs. Some lenders may take on a higher fee with closing costs in exchange for a lower interest rate. It is important that you consider the difference in the mortgage payment and equity growth over time. Think about how long it will take you to recoup the up-front cost differential with the monthly payment differential. This can help you to determine which loan option is the most affordable overall.

Many will pay attention to the interest rate and loan term when shopping for a new mortgage. These are important factors to consider, but they are not the only ones that are important and relevant. Keep each of these points in mind if you want to set up the best overall mortgage.

22

Jun

By support

Market Outlook

What’s Ahead For Mortgage Rates This Week – June 22, 2015

What's Ahead For Mortgage Rates This Week - June 22, 2015 Last week’s economic news included National Association of Home Builders / Wells Fargo (NAHB) Housing Market Index and Commerce Department reports on Housing Starts and Building Permits, the post-meeting statement of the Fed’s Federal Open Market Committee (FOMC), and Fed Chair Janet Yellen’s scheduled press conference.

NAHB: Home Builder Confidence Hits 9 Month High

Home builder confidence in housing market conditions is growing in spite of a planned merger between two builders and related cost-cutting efforts. According to the NAHB’s the home builder index posted a reading of 59 in June as compared to an expected reading of 55 and May’s reading of 54. Any reading over 50 indicates that more builders are confident about housing markets than those who are not. June’s reading was the 12th consecutive month for readings above 50.

The NAHB index is composed of three assessments of market conditions. The reading for current market conditions was seven points higher at 65; builder confidence in current market conditions rose by 6 points for a reading of 69 and the reading for buyer traffic in new single-family housing developments rose five points to a reading of 44.

Regional results for builder confidence were also positive, with three of four regions posting gains in the three-month rolling average of builder confidence. The South posted a gain of three points to a reading of 60; the Northeast region also gained three points for a reading of 44. The West gained two points for a reading of 57 and the Midwest’s reading dropped by one point to 54.

Housing Starts Drop, Building Permits Increase

According to the Commerce Department, Housing starts fell in May while building permits rose. The reading of 1.04 million housing starts was lower than the expected number of 1.08 million starts and April’s reading of 1.17 million housing starts. Analysts note that apartment construction is heating up as fewer families are buying homes. Tight lending standards and concerns about stable job markets continue to keep would-be home buyers from buying homes.

Building permits in May rose from April’s reading of 1.14 million to 1.28 million permits issued. This report includes all types of building permits. David Crowe, chief economist for the National Association of Home Builders noted that the demand for rental units in large metro areas was fueling the pace of permits for multi-family housing.

Fed: No Date Set for Rate Hike; Analysts Predict Rate to Rise in Fall

The Federal Reserve’s FOMC statement and Fed Chair Janet Yellen’s press conference did not provide a date for raising the target federal funds rate, but suggested that most members approved of a rate hike before year-end. While Chair Yellen characterized a rate hike as positive in terms of providing better yields on savings accounts, a rate hike would also lead to higher rates for consumer loans and mortgages.

Mortgage Rates, Jobless Claims Lower

Weekly jobless claims fell to 267,000 new claims filed, a reading much lower than expectations of 275,000 new claims filed and the prior week’s reading of 279,000 new jobless claims filed. Analysts said that the lower reading indicates a healthier labor market.

Mortgage rates fell across the board last week. Freddie Mac reported that the average rate for a 30-year fixed rate mortgage fell by four basis points to 4.00 percent; the average rate for a 15-year fixed rate mortgage fell by two basis points to 3.23 percent and the average rate for a 5/1 adjustable rate mortgage dropped one basis point to an average rate of 3.01 percent. Average discount points were 0.70 percent for a 30-year fixed rate mortgage, 0.50 percent for a 15 year mortgage and 0.04 percent for a 5/1 adjustable rate mortgage.

What’s Ahead

This week’s scheduled economic news includes reports on new and existing home sales and FHFA’s monthly home price report. Reports on consumer spending and consumer sentiment will also be released along with Freddie Mac’s mortgage rates survey and weekly jobless claims.

19

Jun

By support

Home Buyer Tips

Family Matters: How to Choose the Perfect Home for a Large or Growing Family

Family Matters: How to Choose the Perfect Home for a Large or Growing Family Selecting the right home to purchase for a family is a monumental task, and this process can seem even more challenging for those with a large or growing family. A common goal may be to give everyone ample space to stretch out and feel relaxed, but some home buyers may also be focused on other factors like location, cost and even the general style of the home. While choosing the perfect home for a large or growing family is not easy, the process can be simplified by focusing on a few points.

Focus On Storage Space

There are few things that can make home life more miserable in the coming years than a lack of storage space. When a large family does not have adequate storage space in closets, the attic, the garage and your cabinets, their items will likely find a home on the counters, on the floor and in other undesirable locations. Home buyers can consider looking for a home that has more storage space than is needed right now to ensure that the new home can accommodate growing needs over the years.

Think About Function Over Size

Many people who are looking a new home will focus on finding a home that has a specific minimum square footage or a minimum number of bedrooms, but function is generally more important. For example, if a home has bar-style seating at the kitchen counter, the family may not need as large of a breakfast room to accommodate its needs. The family may also get more use out of a home that has a second living area, such as a game room, rather than a formal dining room that may rarely be used.

Choose The Right Floor Plan

In addition, consider reviewing the floor plan of the home carefully. Many prefer to have the kids’ rooms away from the master room, a study placed away from the kids’ game room or an open area where the kitchen and family room are connected so that a parent can oversee the kids while making meals. Home buyers should consider how they live and their likes and dislikes about their current space to determine which floor plan is best for them.

Deciding which home to purchase is rarely easy to do, but be sure to keep these tips in mind when making your decision.