Blog – Page 827 of 842 – Fred Gruber - First Rate Financial Group

22

Jul

Home Mortgage Tips

Is Now the Time to Consider a 15-Year Mortgage? Five Reasons to Give the 15Y Another Look

Is Now the Time to Consider a 15-Year Mortgage? Five Reasons to Give the 15Y Another Look A 15-year fixed mortgage is, as its name suggests, a mortgage that’s paid off after 15 years. Since it amortizes fully, after that amount of time you won’t have to pay anything else. This type of mortgage has a lot of benefits, and below we’ll share just a few of them.

1) No Need For Payments After Retirement

Here it highly depends on when in life you choose to take on the mortgage. However, most people decide to take on a mortgage at around 30 years of age.

If this is the case for you, then it means you’ll be 45 years old when your mortgage will be fully paid. There will be no need to worry about having to use Social Security or pension checks to pay it off.

Another consideration is the fact that the older you are, the more your health costs will go up. Having costs like that pile up while having to make mortgage payments can be a huge problem. For that reason, not having to pay off your mortgage after retirement is a tremendous bonus.

2) Your Home Will Be Yours Sooner

You might think your house is yours the minute you step into it. However, in reality, it’s only yours after you have fully paid your mortgage off. Until then, it can be repossessed if you fail to make payments.

With a 15-year mortgage, your home will become yours in the blink of an eye. Then, you’ll have plenty of time to enjoy other things in life, knowing you already own your home.

3) You’ll Pay Less Interest

If you were to pick, say, a 30-year mortgage, there will be twice as many years in which interest will add up. This will more than double the amount you end up having to pay, as mortgage interest compounds over time.

As such, getting a 15-year mortgage will not only reduce the time you’ll pay it off; it will also reduce the amount you pay back. Saving both time and money is an amazing deal.

4) Get Lower Rates

On most 15-year mortgages, the amount you have to pay in terms of rates is usually lower than for 30-year ones. As such, you’ll be saving money in two ways. First, you’ll save by reducing the time, then, by reducing the actual rate.

5) Learn To Push Yourself

Some people fear getting a 15-year mortgage. The reason is that they think the payments will be too expensive. They think that getting a 30-year mortgage is likely a better idea.

If you can’t afford to make the payments of a 15-year mortgage, you might want to reconsider. However, if you can afford it, but you’re afraid, don’t be. Pushing yourself to achieve something you truly want is a good thing. You’ll become a stronger person, and you’ll have more reason to be proud of your achievement.

A 15-year mortgage has many benefits. The main one is simply that you’ll be able to pay it faster, which means that you won’t worry about it for long. This, in addition to the fact that you’ll be paying less are very convincing factors.

If you’d like to learn more about 15-year mortgage plans, contact your mortgage professional for more information.

21

Jul

By support

Market Outlook

What’s Ahead For Mortgage Rates This Week – July 21, 2014

Mythbusters: 5 Reasons Why Diet Sodas Might Not Be as Healthy as You Think Last week’s economic news offered a variety of indications that the economic recovery continues, but some readings missed their expected levels. The Philadelphia and New York branches of the Federal Reserve Bank reported higher than anticipated manufacturing for their respective regions and new jobless claims were lower than expected.

Fed Chair’s Senate Testimony Hints at Coming Interest Rate Hike

Federal Reserve Chair Janet Yellen testified that the Fed might have to raise interest rates sooner than expected if the economy continues to outperform the Fed’s projections. Ms. Yellen said that the central bank presently estimates that the first rate increases will take place approximately one year from now.

The Federal Open Market Committee (FOMC) of the Fed has repeatedly stated that members will continue to review data and economic conditions changing monetary policy. Ms. Yellen said in last week’s remarks that this holds true whether economic conditions improve or decline.

In other Fed-related news, the Philadelphia Fed released its manufacturing index for July with higher than expected results. The Philly Fed’s reading for July was 23.90 as compared to expectations of 16.50 and June’s reading of 17.80.

The New York Fed reported a similar trend for July with a reading of 25.60 as compared to an estimated reading of 17.50 and June’s reading of 19.30. This is good news after the Northeast’s economy was slammed by severe weather last winter. Weather conditions stalled area housing and labor markets.

Weekly jobless claims were lower at 303,000 than expectations of 310,000 new jobless claims and the prior week’s reading of 305,000 new jobless claims.

Home Builders Post Positive Confidence Reading for July

The National Association of Home Builders posted its highest builder confidence reading in six months for July with a reading of 53 against the expected reading of 50 and June’s reading of 49. Numbers above 50 indicate that more builders surveyed have a positive outlook than not.

Housing Starts for June were reported lower than expected at an annual level of 893,000 against an expected reading of 1.02 million and May’s reading of 985,000 housing starts.

Mortgage Rates Lower

According to Freddie Mac’s weekly survey, average mortgage rates were slightly lower last week. The average rate for a 30-year fixed rate mortgage fell by two basis points to 4.13 percent. Discount points were 0.60 as compared to the prior week’s reading of 0.70 percent. The average rate for a 15-year fixed rate mortgage was 3.23 percent as compared to the previous reading of 3.24 percent.

Discount points for a 15-year mortgage averaged 0.50 percent against the prior week’s reading of 0.50 percent. The average rate for a 5/1 adjustable rate mortgage dropped by two basis points to 2.87 percent with discount points unchanged at 0.40 percent.

The University of Michigan’s Consumer Sentiment Index for July fell just short of expectations at 81.3. Analysts expected a reading of 83.0, based on June’s reading of 82.50. Analysts said that although labor markets are improving, consumers continue to face rising costs for gasoline and food, which likely explained the dip in confidence for July.

What’s Ahead

This week’s economic news releases include Existing Home sales from the National Association of REALTORS®, New Home Sales from the Department of Commerce and the FHFA House Price Index. The Chicago Fed is set to release its National Activity Index. Freddie Mac mortgage rates and New Jobless Claims will be released Thursday as usual.

18

Jul

By support

Home Buyer Tips

Buying a House or Condo? Why the Home Inspection Process is One You Won’t Want to Skimp On

Buying a House or Condo? Why the Home Inspection Process is One You Won't Want to Skimp On Once you have found that perfect home with the right price and every little feature you were hoping for, it’s important to keep in mind that the home has been presented in a way that accentuates its highlights and shadows any flaws. For this reason, it is crucial that you get a home inspection before completing a purchase.

Many sellers also have inspectors investigate the home in order to determine its sale value. As such, they should be aware that a prospective buyer will want to request an independent inspection to verify the findings.

Reasons For Home Inspections

If you are the one purchasing the home, getting an inspection is likely to be the most important investigation you need to perform to ensure you are getting the best value. It can also help to know what reasons each party has for requiring a home inspection.

Buyers, for example, feel peace of mind knowing the home in question is safe. They also gain the ability to negotiate in the event a problem arises from inspection, or they can request repairs first. They can also opt out if the problems that arise are too overwhelming to deal with prior to or after the purchase. Finally, buyers can learn about the kind of maintenance and upkeep be required for the home in the long run.

Sellers, on the other hand, want to make the transaction as smooth of a process as possible to prevent issues that could slow down the sale. They can also learn about any problems they need to repair before putting the house on the market, and they can determine the sale price for the transaction. Lastly, this allows the seller to prove their transparency by having an inspection report available, even though he or she should expect that the buyer should be requesting an independent home inspection regardless.

It should be evident, having an inspection conducted is vital for buyers and sellers alike; though the price might seem costly at first, it is merely a small fee that is well worth the effort to solidify a home purchase.

Finding A Home Inspector

The first thing to keep in mind is that most states lack a licensing process for those who inspect homes. If your state does not have such criteria, finding an inspector in good standing with a nationally recognized organization can help as well.

It is very important not to take a seller’s inspection report at face value, no matter what kind of reputation they may have as a person. You might not even want to accept an inspector that someone else hires since they may have a vested interest that can influence the report.

Keep in mind that a general inspector is not typically licensed to check for specific issues like gas or pests. As such, you will need to either seek someone who is licensed for a full inspection or specificaly request inspection for pests, especially for those in high risk areas.