Blog — First Rate Financial Group

28

Apr

Financial Reports

What’s Ahead For Mortgage Rates This Week – April 28th, 2025

While many useful indicators are set to be released this week, the previous week left us only with the Leading Economic Indicators, which showed signs of the economy slowing down in the future. Consumer Sentiment reports also indicated widespread dissatisfaction across all levels of income and education, largely due to the impacts of recent tariff decisions, which have been on hold.

We should expect next week to provide a clearer picture as decisions are made in the trade war between China and the United States. The PCE Prices, Non-farm Payrolls, Chicago Manufacturing PMI, Personal Income, and GDP estimates will offer more insight into the impact of the tariffs.

Concerns about inflation remain, but given the current stance on monetary policy, the Federal Reserve is much more likely not to react to inflation immediately, keeping its focus largely on the policies being set by the current administration.

Leading Economic Indicators

Leading Economic Index (LEI) for the US declined by 0.7% in March 2025 to 100.5, after a decline of 0.2% (revised up from -0.3%) in February. The LEI also fell by 1.2% in the six-month period ending in March 2025, smaller rate of decline than its -2.3% contraction over the previous six months.

Consumer Sentiment

Consumer sentiment plunged 8% in April from the prior month, to a final reading of 52.2, the University of Michigan said in its latest survey released Friday. That was a slightly smaller decline than a preliminary reading from earlier this month, which didn’t capture people’s reaction to Trump’s 90-day tariff delay announced on April 9.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates saw a decrease of -0.09% for this week, with the current rate at 5.94%
• 30-Yr FRM rates saw a decrease of -0.02% for this week, with the current rate at 6.81%

MND Rate Index

• 30-Yr FHA rates saw a decrease of -0.11% for this week. Current rates at 6.25%
• 30-Yr VA rates saw a decrease of -0.11% for this week. Current rates at 6.27%

Jobless Claims

Initial Claims were reported to be 220,000 compared to the expected claims of 220,000. The prior week landed at 216,000.

What’s Ahead

PCE Prices, Non-farm Payrolls, Chicago Manufacturing PMI, Personal Income, and GDP estimates are set to release next week. With other releases in the Global US Manufacturing PMI which historically isn’t a significant indicator but with a major shift in the dynamics of world trade, we can see major changes in those data release.

25

Apr

By First Rate Financial Group

Home Buyer Tips

Can I Finance Home Renovations Into My Mortgage at Closing?

Purchasing a home that needs renovations or upgrading your current home can be costly, but financing home improvements through your mortgage can be an effective solution. Instead of taking out a separate loan for renovations, some mortgage programs allow you to roll the cost of home improvements into your home loan at closing. This strategy can help you spread renovation costs over time while securing a potentially lower interest rate compared to personal loans or credit cards.

How Financing Renovations Into Your Mortgage Works
When you finance renovations into your mortgage, the loan amount includes both the purchase price (or refinance amount) and the estimated cost of home improvements. The lender typically requires contractor estimates for the work, and funds for renovations may be placed in an escrow account and disbursed as the project progresses.

Loan Options for Financing Home Renovations
Several mortgage programs allow borrowers to finance home improvements at closing:

FHA 203(k) Loan—This government-backed loan is ideal for buyers or homeowners who want to finance major renovations. It comes in two options:

Limited 203(k) Loan—Covers minor repairs and upgrades up to $35,000.
Standard 203(k) Loan—Designed for extensive renovations, requiring a licensed contractor and consultant oversight.

Fannie Mae HomeStyle Renovation Loan—Available for both homebuyers and homeowners, this loan allows you to finance nearly any type of renovation, including luxury upgrades. It requires a higher credit score but offers competitive interest rates.

Freddie Mac CHOICERenovation Loan—This program offers flexible financing for home improvements, including repairs to protect against natural disasters, with options for borrowers to complete some work themselves.

VA Renovation Loan—Eligible veterans and service members can finance renovations through their VA loan, though restrictions apply, and lender participation is limited.

Conventional Cash-Out Refinance—Homeowners with existing equity can refinance their mortgage for a higher amount and use the extra cash for renovations.

Benefits of Financing Renovations Into Your Mortgage

Lower Interest Rates—Mortgage rates are typically lower than personal loans or credit cards, making this a cost-effective option.
Single Loan Payment—Instead of managing multiple loans, you have one mortgage payment covering both the home and renovations.
Increased Home Value—Renovations can boost your property value, potentially improving your home s long-term equity.

Considerations Before Choosing a Renovation Mortgage

Loan Requirements—Some programs require higher credit scores or contractor oversight.
Project Scope and Costs—Lenders may require detailed renovation plans and cost estimates.
Disbursement Process—Funds are often released in stages, which can impact project timelines.

Financing renovations through your mortgage can be a smart way to improve your home without taking on additional debt. Whether you re purchasing a fixer-upper or upgrading your current home, exploring renovation loan options can help you achieve your goals while maintaining financial stability. Consulting with a mortgage professional can help you determine the best financing solution for your needs.

24

Apr

By First Rate Financial Group

Home Care Tips

Unlocking Government Grants for Home Renovations and Improvements

Home renovations can be a significant financial undertaking, but government grants and assistance programs can help offset costs for eligible homeowners. These grants are designed to promote energy efficiency, accessibility, and overall home safety. Understanding the available options and how to qualify can make a substantial difference in financing your home improvement projects.

Understanding Government Home Renovation Grants
Government grants for home renovations are typically offered at the federal, state, or local level and are often geared toward specific types of improvements, such as energy-efficient upgrades, structural repairs, or accessibility modifications. Unlike loans, grants do not need to be repaid, making them an attractive option for homeowners looking to enhance their property.

Common Types of Home Renovation Grants
Several government programs provide financial assistance for home improvements. Some of the most well-known include:

Federal Housing Administration (FHA) 203(k) Loan Program—While technically a loan, the FHA 203(k) program allows homeowners to finance both the purchase and renovation of a home with a single mortgage, often with lower down payment requirements.

Weatherization Assistance Program (WAP)—Designed to improve energy efficiency for low-income households, this program provides grants for insulation, heating, and cooling system upgrades to reduce energy costs.

Home Investment Partnerships Program (HOME)—This federal program helps states and local governments provide financial assistance for home repairs and renovations, particularly for low-income families.

Rural Housing Repair Loans and Grants—Administered by the U.S. Department of Agriculture (USDA), this program provides grants to very low-income homeowners in rural areas for necessary home repairs, health and safety improvements, and accessibility modifications.

State and Local Grant Programs—Many states and municipalities offer their own home renovation grants and incentives, often focused on sustainability, historical preservation, or community revitalization efforts.

Eligibility Requirements for Home Renovation Grants
Each grant program has its own eligibility criteria, which may include:

Income Limits—Many grants are designed for low-to-moderate-income households.
Property Location—Some grants, such as USDA programs, are limited to rural areas, while others focus on specific states or cities.
Type of Renovation—Grants may be restricted to specific improvements, such as energy efficiency upgrades, accessibility modifications, or structural repairs.
Homeownership Status—Most grants require applicants to be the homeowner and reside in the property as their primary residence.

How to Apply for a Home Renovation Grant
Applying for a government grant involves several steps:

Research Available Programs—Start by exploring federal, state, and local resources to find grants applicable to your renovation needs.
Check Eligibility Requirements—Review the criteria for each program to ensure you qualify.
Gather Necessary Documentation—Prepare financial documents, proof of homeownership, contractor estimates, and any other required materials.
Submit Your Application—Follow the specific instructions for each grant program, ensuring all required information is included.
Follow Up on Your Application—Some programs require additional verification or an inspection before funds are awarded.

Government grants for home renovations can provide crucial financial assistance for homeowners looking to improve their property while reducing out-of-pocket expenses. Whether you need energy-efficient upgrades, essential repairs, or accessibility modifications, exploring available grant opportunities can help make your home improvement goals more affordable.

Researching programs, meeting eligibility criteria, and submitting a well-prepared application can increase your chances of securing funding. For additional guidance, consider working with a mortgage or housing professional who can help you navigate the process.