Blog – Page 741 of 820 – First Rate Financial Group

05

May

Home Mortgage Tips

Save Some Additional Cash with Our Guide to Lowering Your Monthly Mortgage Payment

Save Some Additional Cash with Our Guide to Lowering Your Monthly Mortgage Payment If you are like many other homeowners, your home mortgage payment is the single largest expense in your monthly budget. This is a fixed expense that you will typically be responsible for until your loan is paid in full or until you sell your home, and you may have a 15, 20 or even 30 year term on your mortgage.

If your home mortgage payment has become unaffordable or burdensome for you to manage with your current financial situation, rest assured that you may be able to save some additional cash each month without selling your home. Refinancing your existing mortgage can provide you with important financial benefits to help you better manage your budget.

How Refinancing Lowers Your Mortgage Payment

Refinancing your existing mortgage essentially will replace your existing loan with a new loan, but you may not understand how this will result in a lower mortgage payment. When you initially applied for your current mortgage, your payment was fixed based on the interest rates at the time as well as the original loan balance. Since that time, you likely have reduced your loan balance considerably, and interest rates may be improved as well. In fact, some homeowners are able to refinance to a lower rate as well as pull equity out of their home in the process.

How Home Equity Could Further Reduce Monthly Expenses

While your main goal for refinancing a home mortgage may be to reduce the large monthly mortgage payment that you are responsible for, the fact is that you may be able to use your home equity to further reduce your monthly expenses. For example, you can use extra funds provided to you through a refinance to pay off an outstanding student loan, a car payment or a credit card balance. Some homeowners may even be able to pay off most or all of their debts by tapping into their home equity.

It is common for homeowners who have a high and unmanageable mortgage payment to feel overwhelmed and even trapped by their financial situation. However, as you can see, lowering your mortgage payment and even reducing some of your other expenses may be easier to do than you might think. If you are interested in learning more about how refinancing your mortgage may help you to improve your financial situation, you can speak with an experienced mortgage professional today.

04

May

By support

Market Outlook

What’s Ahead For Mortgage Rates This Week – May 4, 2015

Whats Ahead For Mortgage Rates This Week May 4 2015 Last week’s economic news included S&P Case-Shiller Home Price Index reports, the Fed’s FOMC meeting statement and pending home sales. Freddie Mac mortgage rates and weekly jobless claims were also released as usual. The details:

Case-Shiller: Denver Leads Home Price Gains in February

The S&P Case-Shiller 20-City Home Price Index showed that home prices continue to appreciate, but at a slower rate than in previous years. Home prices increased at a seasonally-adjusted year-over-year rate of 4.20 percent in February as compared to the February 2014 reading of 4.40 percent.

Denver, Colorado led February’s year-over-year home price appreciation rates with a reading of 10.00 percent. San Francisco, California followed closely with a year-over-year reading of 9.80 percent and Miami Florida reported year-over-year home price gains at 9.20 percent.

FOMC Statement: Fed Expects Moderate Economic Growth

In its customary post-meeting statement the Federal Open Market Committee (FOMC) the Fed repeated its projections for moderate economic growth, but again kept its options open for raising the target federal funds rate, which currently ranges between 0.00 and 0.250 percent. The Fed noted that inflation remains below its goal of 2.00 percent, largely due to earlier decreases in fuel prices. FOMC indicated it will be monitoring inflation data closely.

FOMC members agreed not to raise the target federal funds rate, but said that FOMC will closely monitor data on its dual mandate to achieve maximum employment and an inflation rate of 2.00 percent. Labor market conditions, readings on expected and actual inflation rates and domestic and international economic developments will be considered before the FOMC raises the target federal funds rate. When the Fed does raise rates, mortgage rates can also be expected to rise.

Mortgage Rates Rise, Jobless Claims Fall to 15 Year Low

Average mortgage rates rose last week according to Freddie Mac. The average rate for a 30-year fixed rate mortgage rose by three basis points to 3.68 percent; the average rate for a 15-year fixed rate mortgage rose by two basis points to 2.94 percent. The average rate for a 5/1 adjustable rate mortgage increased by one basis point to 2.85 percent. Discount points for fixed rate mortgages were unchanged at 0.60 percent and rose from 0.40 to 0.50 percent for 5/1 adjustable rate mortgages.

Weekly first-time jobless claims were lower than expected with a reading of 262,000 claims filed against expectations of 287,000 new claims filed and the prior week’s reading of 296,000 claims filed. This was the lowest reading for new jobless claims in 15 years. The four-week rolling average of new jobless claims fell by 1250 claims to a reading of 283,750 new claims filed. Analysts typically rely on the four-week rolling average reading as it softens the effects of volatility that can occur from week to week.

What’s Ahead

Next week’s scheduled economic reports are dominated by employment related data including the National Unemployment Rate, Non-Farm Payrolls and the ADP Employment report. Weekly jobless claims and Freddie Mac’s Primary Mortgage Market Survey will be released as usual on Thursday.

01

May

By support

Around The Home

Thinking About a Major Renovation? Three Reasons to Consider Adding a Second Story

Thinking About a Major Renovation? Three Reasons to Consider Adding a Second Story When your home is no longer fully functional for your needs, you may be thinking about moving into a larger home with a more functional floor plan. While this is one option to consider, another option is to renovate your existing home. You could build a wing onto your home, or you could add a second story to the property. There are several reasons why adding a second story to your floor plan may be the best solution for you.

Use the Existing Footprint

When you build a wing outward from your home, you will need to pour more foundation and take up a section of the yard with the new addition. By building upward, you can keep your yard intact and use the existing footprint. You may even be able to build into an attic space without making any structural changes to the home itself.

Improve Property Value

When you add a second story onto your home, you essentially will be adding more usable square footage with finished out space. This can have a direct and significant impact on your property value. You will not need to pay moving expenses or worry about if your existing furniture will fit into a new home. You will be able to enjoy the benefits of a larger and more functional home coupled with the ability to recoup most or all of the cost of the renovation through an increase in property value.

Keep Costs to a Minimum

By using the existing footprint of your home and by avoiding pouring more concrete for the foundation, you will be able to keep costs to a minimum. In some cases, such as if you build into the existing attic, you will not need to adjust the frame or roof to find the additional space you need. You may still need to add drywall, HVAC ducts and other features inside the frame of the home to take advantage of this space, but it generally is more cost-effective to build upward rather than outward when renovating a home.

A major renovation is one that can improve the style of your home, but it often will improve the function and increase value as well. If you are thinking about renovating your home, you may research how beneficial it can be to add more space upward on your home rather than to build outward. Talk with your mortgage professional today to see what financial options you may have available to you for renovating your home.