Tag Archives: Today’s Mortgage Rates

It Isn’t Final Until It’s Funded

28 Monday Nov 2016

Posted by in Helpful Information, News you can USE!

≈ Leave a comment

Tags

, , , , , , , ,

Mortgage approval isn’t final until it’s funded.  Things can change prior to the loan being closed that can affect a pre-approval such as changes in the borrowers’ financial situation or possibly, factors beyond their control like interest rate changes.40783733-250.jpg

Good advice to buyers is to do nothing that can affect your credit report until the loan closes. Opening new credit cards, taking on new debt for a car or furniture or changing jobs could affect the lender’s decision if they believe you may no longer be able to repay the loan.

The benefits of buyer’s pre-approval are definitive: it saves time, money and removes the uncertainty of knowing whether the buyer is qualified. The direct benefits include:

  • Amount the buyer can borrow – decreases as interest rates rise
  • Looking at “Right” homes – price, size, amenities, location
  • Find the best loan – rate, term, type
  • Uncover credit issues early – time to cure possible problems
  • Bargaining power – price, terms, & timing
  • Close quicker – verifications have been made

It is a very common practice for mortgage lenders to require income and bank verifications and to re-run the borrowers’ credit one final time just prior to closing. Mortgage approval isn’t final until it’s funded.

When the rate goes up

26 Monday Sep 2016

Posted by in Around Town, Finding a Realtor, Helpful Information, News you can USE!

≈ Leave a comment

Tags

, , , , , ,

It’s not “if” the rate goes up but “when” the rate goes up; it could make a big difference for some buyers. Freddie Mac predicts that mortgage rates will be at 4.5% a year from now.

mortgage-rate-history

If buyers can afford a home with higher interest rates, it means higher payments. Higher payments might mean they won’t have the money to spend on other things like furniture or improvements to the home or an unrelated purchase like a new car.

When the rate moves 0.50% on a $250,000, the payment goes up by $70.66 a month. If it moves 1.00%, the payment goes up by $143.74 per month, each and every month for the entire term of the mortgage which means paying over $50,000 more for the house.

The question facing every borrower in this situation is “How will you feel about having to pay more to live in the same house because you were not ready to commit?”

Then, there’s the borrower who is absolutely maxed out as to what they can qualify for or sometimes, it is a borrower who just refuses to pay a higher payment. When that’s the case, the buyer has to make a larger down payment. In the same example, a 0.50% increase in rate would require $14,873 more in down payment. That could make the purchase impossible or require the buyer to buy a lesser price home that will not have the same amenities.

Mortgage rates have been low for so long that some people think that is what they should be. There are some economists who believe that the economy will not be strong again until mortgage rates are in the 7% range.

To see how this type of scenario might affect you, go to the   http://www.betterhomeowners.com/FinancialApps/RateGoesUp.aspx?AccountId=EDlpyr3ghkCnBFQdFv9dGQ&Auth=1

Today we are sharing the latest Mortgage Rate Update from a Local Lender!

16 Wednesday Feb 2011

Posted by in News you can USE!

≈ Leave a comment

Tags

, ,

Rates are still amazingly low so now is the time to buy! If you are thinking of buying a new home give us a call. We are never to busy to help you make your dreams come true! We will be there from bank approval, finding the right home, making the best offer, inspectors, title companies, and more….helping you make the right decision for you and your family. Finding the right lender is the first step, so call us today and we will get you started!

 

 

ERICA WHIDDON
MORTGAGE BROKER/OWNER
FIRST CHOICE MORTGAGE, LLC
Phone: (225) 665-4399
Fax: (225) 665-4599
License: NMLS# 75327
erica@mylamortgage.com
http://www.mylamortgage.com

Interest Rates Change Daily

Interest rates change constantly, but it is important to know that rates are cyclical. If rates are currently at historical lows then we know there is a strong probability rates will go up again, and vice versa. Certain economic indicators such as unemployment data, consumer price index, retail sales data, and consumer confidence all have an effect on mortgage interest rates. But the key factor to watch is the relationship between stocks and bonds.
When the economy is slow and the stock market is "bearish," many investors move money out of stocks and into bonds and mortgage-backed securities. This causes mortgage interest rates to go down. When the economy is doing well, the stock market rallies and is considered "bullish." Investors then have a tendency to move their money out of that safe haven of bonds and mortgage-backed securities and back into stocks. As a result, mortgage interest rates go up.
My team and I keep a close eye on mortgage interest rates at all times in an effort to alert our clientele of opportunities to obtain lower financing. Call us for a free evaluation of your current loan program.

Mortgage Interest Rates*

Rates as of Wednesday, 16th February, 2011:

Conforming
APR
4.875%
15-Yr. fixed
4.25%
USDA Rural Dev
4.875%
FHA
4.875%
VA
4.875%
*Rates are subject to change due to market fluctuations and borrower’s eligibility.