Blog — Page 713 of 887 — First Rate Financial Group

21

Jun

Home Mortgage Tips

Ready to Be a Landlord? Important Considerations Before Renting Your Home

Ready to Be a Landlord? Important Considerations Before Renting Your Home Whether you’re going away on an extended vacation or considering downsizing into a smaller place, the popularity of websites like Airbnb has led many people to believe that there’s a lot of money in home rental. However, before putting your home on the market, it’s important to be aware of some of the factors that go into having a rental property. It may seem like extra money, but it’s the small details that can make it a more complicated process.

Is It A Short Term Solution

Many people plan on putting their home on the market for a short duration of time, but if you’re only planning on renting for 6 months or a year, it may not be as financially lucrative as you think. While tax breaks can go along with rental properties, the money you make off of this kind of investment is taxable so if you’re not in it for a slightly longer haul, you may not see the financial boost you’re looking for.

What Are You Willing To Deal With?

For those who are planning to put a home on the market, they still need some place to live, and this can mean that a certain amount needs to be made each month for the costs of having two homes even out. Before putting any serious considerations into this, ensure that you know it’s financially feasible. It’s entirely possible that you won’t have renters for certain periods of time and you could also run into problems with the renters you find, so you should sit down and put pen to paper to consider the investment potential.

Have You Considered The Maintenance?

Out of sight is often out of mind, but if you have a renter, you’re responsible for anything that goes wrong in the home. From small maintenance duties to sizeable but necessary overhauls, there are many things you’re legally obligated to do as a landlord and you’ll need to be prepared to take on these responsibilities. Since it will be the duty of the owner, in the event you don’t want to do it, you’ll have to hire a contractor who will be able to handle the work for you.

Having a house as a second property may seem like an ideal investment, but this can require you to take on the responsibilities of a landlord and you may even have to deal with problematic rental situations. If you’re searching for an additional property in the near future, contact your local mortgage professional for more information.

20

Jun

By support

Mortgage Rates

What’s Ahead For Mortgage Rates This Week – June 20, 2016

Whats Ahead For Mortgage Rates This Week January 18 2016 Mortgage rates fell after Federal Reserve policymakers decided not to raise the Fed’s target federal funds rate. The Federal Open Market Committee cited ongoing concerns over global financial and economic developments and slow jobs growth as factors in its decision not to raise rates. Fed Chair Janet Yellen emphasized the committee’s decision-making process is not predetermined and said that ongoing review of current and developing news is significant to monetary policy decisions.

Last week’s economic news also included the NAHB Housing Market Index, the monthly inflation rate and retail sales along with weekly reports on mortgage rates and new jobless claims.

Home Builder Confidence Rises in June

According to the National Association of Home Builders Housing Market Index, Home builder confidence rose one point to a June reading of 60. May’s reading was 58 and analysts expected a reading of 59. June’s reading broke a four-month streak of unchanged readings. Sub-readings used to calculate the Housing Market Index were one point higher at 64 for current market conditions. Builders had higher confidence in market conditions for the next six months. June’s reading was five points higher at 70. June’s reading for buyer traffic remained below the benchmark of 50 at 47. The NAHB gauge of buyer traffic in new homes hasn’t hit 50 since the peak of the housing bubble.

National inflation as measured by the Consumer Price Index was lower in May at 0.20 percent as compared to April’s reading of 0.40 percent; analysts expected a reading of 0.30 percent. Core inflation held steady at 0.20 percent; the core reading excludes volatile food and energy sectors, but energy prices, fuel prices and food are major components of household budgets.

The Federal Reserve has set an annual inflation rate of 2.00 percent as a benchmark reading for its consideration or raising the federal funds rate. Readings have remained consistently lower in recent years, which contributed to the Fed’s decision not to raise interest rates.

Mortgage Rates Fall as Jobless Claims Rise

Freddie Mac reported lower average mortgage rates for fixed and adjustable mortgages last week. 30-year fixed rate mortgages dropped f six basis points to an average of 3.54 percent. Rates for a 15-year fixed rate mortgage averaged

2.81 percent, which was also six basis points lower. The average rate for a 5/1 adjustable rate mortgage was eight basis points lower at 2.740 percent. Lower mortgage rates are welcomed by first-time and moderate income homebuyers as home prices continue to rise.

New jobless claims rose to 277,000 as compared to an expected reading of 270,000 new claims and the prior week’s reading of 264,000 new claims. Analysts attributed the jump in new claims to seasonal influences including new claims filed by school workers eligible for benefits when classes aren’t in session.

What’s Ahead

Next week’s scheduled economic reports include reports on new and existing home sales along with weekly reports on mortgage rates and new jobless claims. A monthly reading of consumer sentiment will also be released.

17

Jun

By support

Home Mortgage Tips

Mortgage Fraud: 3 Common Scams to Avoid

Mortgage Fraud: 3 Common Scams to Avoid There are many ins and outs involved in securing a mortgage lender, and as a result there are many offers and options out there which are only around to take advantage of prospective homebuyers. If you’re on the lookout for a home and are trying to wade through all the details successfully, here are some things you may want to be aware of.

The Perfect Rental Deal

If you’ve ever rented an apartment in the past, it’s entirely possible that you’ve run into deals on Craigslist where a sizeable, stunning property is advertised at a very modest price. While scams like this are quite common when it comes to rentals, they also occur when scammers copy MLS listing and pretend to be an agent facilitating a real estate deal. There’s no sure way to avoid scams like these, but ensure you don’t hand over money or sign anything unless you’re 100% certain whom you’re dealing with.

Lenders Who Push The Envelope

Reliable lenders will be upfront with you when explaining the details associated with your mortgage, so it’s important to be cautious if you end up dealing with someone who asks you to exaggerate or embellish your financial claims. The only way to make a solid investment is to be honest about your financial situation, and anyone trying to inflate your income and the price you can pay is only hoping to gain a piece of the profit for themselves.

Investment Speakers And Seminars

With so much information out there, many people look for courses that will make them aware of the basics of investing so that they can do some of the legwork on their own. Courses like these can be useful in many cases but if they happen to be sponsored by an organization and are charging high attendance fees, there’s a good chance they’re trying to endorse their own services and may not be providing the most accurate information. Instead of guessing for yourself, you may want to read up on the basics and follow up with a trusted lender for any additional questions.

There’s a lot involved in delving into the real estate market, and that’s why it’s important to watch out for the kinds of things that may not be serving your best interest. If you’re currently looking for a lender and are planning on buying a home soon, contact your local mortgage professional for more information.