18
Feb
By First Rate Financial Group
Mortgage Rates

Understanding The Key Factors That Affect Your Mortgage Interest Rate

Understanding the Key Factors That Affect Your Mortgage Interest RateWhen you initially start shopping for a home mortgage, you may be drawn to advertisements for ultra-low interest rates. These may be rates that seem too good to be true, and you may gladly contact the lender or mortgage company to complete your loan application. However, the unfortunate truth is that all too often, mortgage applicants are unpleasantly surprised and even disheartened to learn that they do not qualify for the advertised interest rate. By learning more about the factors that influence your interest rate, you may be able to structure you loan in a more advantageous way.

Your Credit Rating

One of the most important factors that influence an interest rate is your credit score. Lenders have different credit score requirements, but most have a tiered rating system. Those with excellent credit scores qualify for the best interest rate, and good credit scores may qualify for a slightly higher interest rate. Because of this, you may consider learning more about your credit score and taking time to correct any errors that may be resulting in a lower score.

The Amount Of Your Down Payment

In addition, the amount of your down payment will also play a role in your interest rate. The desired down payment may vary from lender to lender, but as a rule of thumb, the best home mortgage interest rates are given to those who have at least 20 to 30 percent of funds available to put down on the property, and this does not include subordinate or secondary financing. If you are applying for a higher loan-to-value loan, you may expect a higher interest rate.

The Total Loan Amount Requested

In addition, the total loan amount will also influence the rate. There are different loan programs available, but one of the biggest differences in residential loans is for very large loan amounts. The qualification for a jumbo loan will vary for different markets, but these loans qualify for different rates than conventional loans with a smaller loan amount.

While you may be able to use advertised interest rates to get a fair idea about the rate you may qualify for, the only real way to determine your mortgage rate will be to apply for a loan and to get pre-qualified. You can contact a mortgage lender today to request more information about today’s rates and to begin your pre-qualification process.

17
Feb
By First Rate Financial Group
Mortgage

The Top Tips For Impressing A Potential Buyer At Showings

The Top Tips For Impressing A Potential Buyer At ShowingsFor those who are getting ready to put their home on the market, they want to make sure they get as much money as possible for their home. This means making a positive first impression. There is never a second chance to make a first impression. Therefore, homeowners need to make sure they do everything possible to “wow” potential buyers at open houses and showings. What are a few of the top tips that homeowners should keep in mind?

Listen To The Agent

Homeowners know their home the best. Therefore, they feel like they are able to show their home in the best manner possible. Even though they should have some input, homeowners are ultimately selling a building. They are not selling their memories.It is a prudent idea to listen to the agent. For example, the real estate agent may recommend staging the home in a certain way. The real estate agent may even recommend that he or she hosts the open house personally. Homeowners will need to listen to the experience of their real estate agent in order to have the best showing possible. 

Clean The Home Thoroughly

Homeowners also need to make sure they clean the home thoroughly. There is a high chance that the real estate agent may even recommend a cleaning service to scrub the house from top to bottom. Even though a potential buyer is probably going to clean the home after he or she buys it, nobody likes to see a dirty house. If there are any children or pets living in the home, try to eliminate all traces of them. 

Put Away Family Photos And Memories

Finally, homeowners also need to put away any family photos or personal items they have left out. When someone is looking for a new home, they want to envision what their life might be like in that home. This is going to be challenging if the current homeowner has family photos all over the walls. Remember, selling a home does not mean selling the memories in it. As a result, homeowners should try to put away their family photos and trinkets before the open house or showing. This will increase the chances of getting a great offer.

 

16
Feb
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – February 15, 2021

What's Ahead For Mortgage Rates This Week - February 15, 2021

Last week’s scheduled economic reporting included readings on inflation, Federal Reserve Chair Jerome Powell’s speech on U.S. labor markets, and weekly readings on mortgage rates and jobless claims.

Oil Prices Push Inflation Higher in January

Rising oil and gasoline prices drove a jump in January’s consumer price index. Inflation rose 0.30 percent month-to-month, which matched analysts’ expectations. The year-over-year inflation rate rose to 1.40 percent but remained lower than the pre-pandemic annual pace of 2.30 percent. The core inflation rate, which excludes volatile food and energy sectors, was unchanged in January.

Some analysts expect stronger inflation throughout 2021 due to the impact of stimulus payments and the potential for covid-19 vaccines. Widespread vaccinations are expected to reduce quarantine requirements and local restrictions on businesses and workplaces.

Fed Chair Doesn’t Expect Lasting Jump in Inflation in Near Term

In remarks made during a speech to the Economic Club of New York, Federal Reserve Chair Jerome Powell said he anticipated neither “a large nor sustained” increase in inflation for the near future. Mr. Powell also said that rising prices caused by bursts of spending were not sustainable. “Inflation has been much lower and more stable over the past three decades than in earlier times.” The Fed Chair also observed that “In the 1970s  when inflation would go up, it would stay up.”

Mortgage Rates Hold Steady as Jobless Claims Decrease

Freddie Mac reported no change in the average rate of 2.73 percent for 30-year fixed-rate mortgages; the average rate for 15-year fixed-rate mortgages dropped by two basis points to 2.19 percent. The average rate for 5/1 adjustable-rate mortgages rose one basis point to 2.79 percent. Discount points averaged 0.70 percent for 30-year fixed-rate mortgages, 0.60 percent for 15-year fixed-rate mortgages, and fell to 0.20 percent for 5/1 adjustable rate mortgages.

Jobless claims fell last week with 793,000 initial claims filed as compared to the prior week’s reading of 812,000 first-time claims filed. 4.55 million continuing jobless claims were filed last week as compared to 4.69 million ongoing claims filed in the prior week.

What’s Ahead

This week’s scheduled economic reports include readings from the National Association of Home Builders Housing Market Index and Commerce Department readings on housing starts and building permits issued. The National Association of Realtors will report on sales of previously-owned homes. Weekly readings on mortgage rates and jobless claims will also be published.