Blog — Page 642 of 887 — First Rate Financial Group

25

Apr

Home Buyer Tips

How Young Is ‘Too Young’ to Buy Your First Home? Getting Started Early Has Its Ups and Downs

How Young Is 'Too Young' to Buy Your First Home? Getting Started Early Has Its Ups and Downs Many millennials are expected to enter the housing market in the next year with the interest rates still low. However, while it may be a good time, it does not necessarily mean that it’s the right time for you to make the investment. If you’re currently weighing your options when it comes to home ownership, here are some things to consider before you decide put the money down.

Are You Struggling With Student Debt

It’s possible to invest in a home when you’re still paying down student debt, but if you’re also struggling with a low-paying job and a high debt load, it may not be the right time to buy. Instead of trying to make ends meet to pay a monthly mortgage payment, it might be a better decision to pay off some of your debt, lower your interest costs and consider investing later on. This will also enable you to afford more home when you decide the time is right to buy.

Do You Have A Down Payment?

It can be a good testament to your financial ability if you want to purchase a home at a young age, but having a down payment is one of the most important things to have on hand when it comes to investing. If you’ve come up with 20% of the purchase price, this will allow you to avoid mortgage loan insurance. If you don’t have this amount, however, or much of anything saved up, you may want to create a budget in order to save up for your down payment.

Are Your Ready To Commit?

Many people romanticize the idea of buying a home since it’s something that really belongs to them, but it’s important to be prepared for the monthly mortgage payments, home maintenance and all the other fees and responsibilities associated with home ownership. It’s great if you want to invest, but if you want to travel or explore different job opportunities or even continue your education, an investment commitment may not be the best choice.

It can be a great financial benefit for your future to invest in a home at a young age, but it’s important to ensure you’re ready for the commitment by having your debt paid down and having money saved.

24

Apr

By support

Mortgage Rates

What’s Ahead For Mortgage Rates This Week – April 24, 2017

Last week’s economic reports included NAHB Housing Market Index, Commerce Department readings on housing starts and building permits issued. The National Association of Realtors® released data on existing home sales; Freddie Mac released average mortgage rates and new jobless claims were also released.

Builder Sentiment Dips in April, but Remains Strong

The National Association of Home Builders reported that home builder sentiment dipped three points in April to an index reading of 78. Any reading over 50 indicates that more builders are positive about housing market conditions than not. Builders continued to cite concerns including shortages of labor and buildable lots and increasing materials costs.

Builder confidence in housing market conditions do not always reflect building activity. March housing starts were lower at 1.215 million starts on a year-over-year basis. February’s reading was 1.303 million starts; the expected reading for April was 1.238 million starts. Readings for housing starts include single family homes of one to four units and multifamily complexes with five or more units. Single-family housing starts were 6.20 percent lower than in February at a seasonally-adjusted annual rate of 821,000 starts.

While housing starts were lower in March, more building permits were issued in March than in February. 1,260 million permits were issued in March on a seasonally-adjusted annual basis as compared to February’s reading of 1.216 million building permits issued.

Mortgage Rates Fall, Existing Home Sales Up

Mortgage rates fell below three percent according to Freddie Mac. The average rate for a 30-year fixed rate mortgage dropped from 4.08 percent to 3.97 percent; the average rate for a 15-year fixed rate mortgage fell by nine basis point from 3.34 percent to 3.23 percent. The average rate for a 5/1 adjustable rate mortgage was eight basis points lower at 3.10 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for a 5/1 adjustable rate mortgage. Lower mortgage rates are good news for home buyers challenged by rapidly rising home prices based on high demand and low supplies of homes for sale.

Home buyers persisted in March despite higher home prices. Sales of pre-owned homes hit a 10 year high in March as 5.71 million pre-owned homes were sold on a seasonally-adjusted annual basis. As compared to February’s reading of 5.48 million pre-owned homes sold, analysts expected a reading of 5.65 million sales of pre-owned homes in March.

New Jobless Claims Rise

First-time jobless claims were higher last week with a reading of 244,000 new claims as compared to the prior week’s reading of 234,000 new jobless claims. Week-to-week readings for new jobless claims tend to be volatile, but last week’s reading remained well below the benchmark of 300,000 new claims filed.

What‘s Ahead

This week’s economic news includes readings on new and pending home sales, Case-Shiller Home Price Index reports, along with weekly reports on average mortgage rates and new jobless claims.

21

Apr

By support

Home Mortgage Tips

Did You Know? How Accelerating Your Mortgage Payments Can Help Your Credit Score

Did You Know? How Accelerating Your Mortgage Payments Can Help Your Credit Score The tough part might be over after your mortgage has been approved, but it’s still important to keep on top of your monthly payments and maintain a good credit score for your financial future. If you’re currently wondering how increasing your mortgage payments can help your credit outlook, here are some things to consider.

Change Your Payment Schedule

Most people opt for a monthly mortgage payment, which can certainly stretch the budget but is still something that can be maintained consistently. However, what many homeowners don’t realize is that more consistent payments, like a bi-weekly or even weekly payment, can actually pay down the principal that is owed on your home. While this may seem like enough of a benefit on its own, this will also lower the interest you pay on your investment and will mean financial freedom much more quickly!

Make A Lump Sum Payment

Whether you’ve come into an inheritance or received a bonus at work, making a lump sum payment on your mortgage can be a great way of minimizing your interest and improving your overall credit. There are often limitations on the amount of money you can put down, but by adding an additional payment to the amount still owing on your mortgage, you might be surprised by the money savings and the boost to your financial profile.

Limit Your Amortization Period

25 years may be the standard amortization period for a mortgage, but longer is not necessarily better when it comes to your biggest investment. While you won’t want to push yourself too much if your monthly mortgage payment is already high, if you have the financial wherewithal to make a higher payment, it may be worth it for owning your home a little sooner. A shorter amortization period may seem like it will significantly bump your monthly mortgage, but by re-tooling your budget you can get the benefit to your credit score without sacrificing your monthly expenditures.

For many people, it is a month-to-month challenge to stick to their budget and make the monthly mortgage payment, but there are benefits to putting down more than expected. Whether you come into a lump sum amount or want to pay on a bi-weekly basis, extra payments can help to improve your credit and make your investment yours much sooner. If you’re currently in the market for a home, contact your trusted mortgage professionals for more information.