As you may know, mortgage interest rates are near historic lows.
The government shutdown has come to an end, but how does the House's last minute deal and the post-shutdown environment impact mortgage rates?
With the debt ceiling stalemate in Washington resolved at least until February 7, 2014, rates could dip in the short term. Home builders stalled by the government shutdown will resume confidence and government-affiliated mortgages such as FHA, VA, USDA and FEMA loans will continue running smoothly.
Here are some helpful tips to avoid the credit mistakes many borrowers make during the loan process:
Private Mortgage Insurance (PMI) is essentially required by a lender when a buyer is purchasing a residential property with a deposit of less than 20%. The main purpose of PMI is to protect lenders from suffering losses when a borrower defaults and their property goes into foreclosure.
Annual Percentage Rate (APR) is a tool that consumers can use as a starting point to compare loan programs. However, it's important to keep in mind that APR is not a perfect system, and not all lenders calculate APR in the same way. While the Federal Truth-in-Lending Act does require any mortgage broker or lender to disclose APR to the consumer, there is no rule written in stone for calculating this number that each and every lender agrees upon.
As our economy enters a recovery, the immediate question to home buyers revolves around rising mortgage rates. The article below from Fortune Magazine online explains where rates have been, where they are and where they are likely to go.
As always, I recommend staying in touch with your mortgage advisor if you are thinking of buying a home or refinancing, so that you can be aware of the trends and know how to make the best decision for your individual situation.
Many Real Estate professionals feel that open houses are too time-consuming. Frankly, they are time-consuming. But I can provide assistance as a mortgage professional on hand to field many questions for you regarding financing options.
Even in a booming market, homes don't sell themselves. I would like to be an ally for you and assist you at your open house events by providing answers to questions about financing on location. I am prepared to help you roll out the red carpet for your upcoming open houses with the following info-marketing materials: