19
Jul
By First Rate Financial Group
Around The Home

Why You Should Consider a Home Energy Audit

Why You Should Consider a Home Energy AuditIn today’s environmentally conscious world, finding ways to save on energy costs has become increasingly important. One effective method to achieve both goals is by conducting a home energy audit. A home energy audit is a comprehensive assessment of your home’s energy efficiency and helps identify areas where energy is being wasted.

Identify Energy Inefficiencies: A home energy audit provides a detailed analysis of your home’s energy consumption patterns. Certified auditors use specialized tools and techniques to evaluate various aspects of your property, including insulation, HVAC systems, appliances, lighting, and more.

Save on Energy Costs: Identifying energy inefficiencies through a home energy audit allows you to take targeted actions to reduce your energy consumption.

Enhance Comfort and Indoor Air Quality: A home energy audit not only helps you save on energy costs but also improves the overall comfort and indoor air quality of your living space.

Contribute to Environmental Conservation: Reducing energy consumption through a home energy audit has a positive impact on the environment. By minimizing energy waste, you can help lower greenhouse gas emissions associated with electricity generation.

Access to Incentives and Rebates: Many utility companies, government agencies, and environmental organizations offer incentives and rebates for energy-saving upgrades. By conducting a home energy audit, you gain valuable information to take advantage of these programs.

A home energy audit provides valuable insights into your home’s energy performance, allowing you to identify areas for improvement and make informed decisions to enhance energy efficiency. By conducting a comprehensive assessment, you can save on energy costs, improve comfort and indoor air quality, contribute to environmental conservation, and access incentives and rebates. 

It’s important to prioritize the recommendations based on your budget and potential energy savings. You can also reach out to a professional contractor or energy auditor for assistance in implementing the recommended upgrades. By addressing the issues identified during your home energy audit, you can improve the energy efficiency of your home and save money on utility bills. Consider a home energy audit today and take the first step toward a greener, more energy-conscious lifestyle.

18
Jul
By First Rate Financial Group
Home Mortgage

Understanding Assumable Mortgage Loans

Understanding Assumable Mortgage LoansMortgage loans are an essential aspect of financing the purchase of a property. Among the various types of mortgages available, one option that may be advantageous for both buyers and sellers is an assumable mortgage loan.

An assumable mortgage loan is a type of home loan agreement that allows a homebuyer to assume the existing mortgage of the seller when purchasing a property. In other words, the buyer takes over the seller’s mortgage terms and conditions, including the interest rate, repayment schedule, and remaining balance.

Benefits of an Assumable Mortgage Loan:

Favorable Terms: Assumable mortgages often carry lower interest rates than current market rates. By assuming an existing mortgage, a buyer may secure more favorable terms compared to obtaining a new loan, potentially resulting in significant savings over the long term.

Reduced Closing Costs: Since an assumable mortgage involves taking over an existing loan, the buyer can avoid certain closing costs associated with originating a new mortgage, such as loan application fees, appraisal costs, and title insurance premiums.

Streamlined Approval Process: Assuming a mortgage can simplify the home buying process as the buyer bypasses the extensive underwriting process typically required for a new loan. This can save time and effort, especially if the buyer’s financial situation is not ideal for securing a traditional mortgage.

Considerations and Limitations:

Lender Approval: While assumable mortgages can offer advantages, it’s important to note that not all mortgages are assumable. The terms and conditions of the original mortgage agreement, as well as the lender’s policies, will dictate whether assumption is allowed. Obtaining approval from the lender is a crucial step in the process.

Qualifying Criteria: The buyer assuming the mortgage must still meet the lender’s qualifying criteria. The lender will assess the buyer’s creditworthiness, income stability, and other relevant factors to ensure they can meet the financial obligations associated with the mortgage.

Liability for the Seller: Although the buyer assumes the mortgage, the seller may still remain partially liable for the loan. Depending on the specific terms of the agreement, the seller may be held responsible if the buyer defaults on the loan, potentially impacting their creditworthiness.

The Assumption Process: Assuming a mortgage typically involves several steps:

Identify Assumable Mortgages: Buyers should inquire whether the seller’s mortgage is assumable and review the terms and conditions outlined in the original mortgage agreement.

Obtain Lender Approval: The buyer must apply with the lender to assume the mortgage. This involves submitting financial documentation, undergoing a credit check, and meeting the lender’s criteria.

Execute an Assumption Agreement: Once approved, the buyer, seller, and lender enter into an assumption agreement, detailing the terms and conditions of the transfer.

Closing and Transfer: The buyer assumes the mortgage during the closing process, which involves transferring ownership of the property and assuming responsibility for the mortgage payments.

It’s important to note that assuming a mortgage can be a complex process and may not be the best option for every buyer. Buyers should carefully review the terms of the mortgage and assess the risks before agreeing to assume the loan. Additionally, buyers may want to work with a real estate agent or attorney to help navigate the process.

17
Jul
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – July 17, 2023

What's Ahead For Mortgage Rates This Week - July 17, 2023Last week’s economic reporting included readings on month-to-month and year-over-year inflation and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also published.

Month-to-Month Inflation Rises as Year-Over-Year Inflation Slows

The Consumer Price Index for June rose 0.20 percent in June as compared to May’s reading of 0.10 percent growth and expectations of 0.30 percent month-to-month growth. The core CPI reading, which excludes volatile food and fuel sectors, fell to 0.20 percent growth in June as compared to May’s month-to-month reading of 0.40 percent growth.

The year-over-year reading for the Consumer Price Index in June slowed to 3.00 percent growth as compared to May’s reading of 4.00 percent and analysts’ expected reading of 3.10 percent year-over-year growth.

The year-over-year reading for the Core Consumer Price Index showed 4.80 percent growth; analysts expected year-over-year inflationary growth of 5.00 percent. May’s year-over-year inflation reading showed 5.30 percent growth. Year-over-year readings show overall inflation trends without month-to-month volatility.

Rising interest rates did not appear to impact consumers’ enthusiasm. July’s preliminary index reading of 72.60 for the Consumer Sentiment Index was the highest reading published since September 2021. Analysts expected an index reading of 65.50 as compared to June’s reading of 64.40.

Mortgage Rates Nearing 7 Percent

Average mortgage rates rose last week and approached 7.00 percent for 30-year fixed-rate mortgages according to Freddie Mac’s weekly Primary Mortgage Market Survey.  The average rate for 30-year fixed-rate mortgages rose by 15 basis points to 6.96 percent. The average rate for 15-year fixed-rate mortgages rose six basis points to  6.30 percent. July 13 jobless claims will be published this week.

What’s Ahead

This week’s scheduled economic reporting includes readings on home builder confidence in single-family housing market conditions, and government reporting on housing starts and retail sales. The National Association of Realtors® will release its monthly report on sales of previously-owned homes. Weekly readings on mortgage rates and jobless claims are also expected.