Higher Rates Equal Higher Borrowing Costs What a difference a couple of months make. In early January of this year, the 30-year fixed-rate mortgage was hovering near the low 3% level and just above record lows. The lowest on record was seen in January of 2021 at 2.65%. But that was fairy tale land, and those bottom basement numbers could be a thing of the past. However, as we know, anything can happen. The current rate is around 5.0%. Inflation has surged to a point where the Consumer Price Index, a measure of consumer goods and services, is at a 40-year high. That has caused bond prices … Continue reading...
40 Year Loan
The Pros and Cons of the Proposed 40-Year FHA FHA borrowers are one step closer to being able to reduce their monthly payments by modifying their loan term to 40 years. In early April, the Department of Housing and Urban Development (HUD), which oversees the FHA, proposed a rule change to increase the maximum term for loan modifications from 30 to 40 years. The proposal will be open to public comment until May 31, 2022 before moving forward. Forty-year loans wouldn’t be available to new homeowners. The modification is designed to help current FHA borrowers … Continue reading...
Rising Mortgage Rates
How To Approach Rising Mortgage Rates as a Buyer In the last few weeks, the average 30-year fixed mortgage rate from Freddie Mac inched up to 5%. While that news may have you questioning the timing of your home search, the truth is, timing has never been more important. Even though you may be tempted to put your plans on hold in hopes that rates will fall, waiting will only cost you more. Mortgage rates are forecast to continue rising in the year ahead. If you’re thinking of buying a home, here are a few things to keep in mind so you can succeed even … Continue reading...
Funding Your Home Purchase
If you’re buying or selling a home this year, you’re likely saving up for a variety of expenses. For buyers, that might include things like your down payment and closing costs. And for sellers, you’re probably working on a bit of spring cleaning and maintenance to spruce up your house before you list it. Either way, any money you get back from your taxes can help you achieve your goals. Using a tax refund is a common tactic for buyers and sellers. SmartAsset estimates the average American will receive a $2,897 tax refund this year. The map below provides a more detailed … Continue reading...
Do You Need 20% Down
You likely have a plan in place, and you’re working on saving for your purchase. But do you know how much you actually need for your down payment? If you think you have to put 20% down, you may have set your goal based on a common misconception. Freddie Mac says: “The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.” Unless specified by your loan type or lender, it’s typically not required to put 20% down. According to the Profile of Home … Continue reading...
Interest Rates
Rates Expected to Rise Amid Feds Taper Plan By Christopher Pataki Real Estate Agent with RE/MAX Associates RS - 0019092 REPORT With the final quarter of 2021 upon us, mortgage rates remain low and just above the all-time lows seen at the outset of the year when the 30-year fixed-rate mortgage hit 2.65%. As the U.S. economy grew and the labor market strengthened throughout the year, rates increased slightly, which is natural in an improving economy. Rates were held low due in part to the Fed's massive asset purchase program where it purchased up to $120B worth of … Continue reading...
Interest Rates July 16, 2021
Home Borrowing Costs Decline Again After a spike in the 30-year fixed-rate mortgage (from the lows seen in early January of 2.65% to a high of 3.18% by April 1st), home borrowing costs declined in April and May, now resting just above their historic lows. The run-up in rates from January to April was due in part to the specter of rising inflation as the U.S. economy emerged from the pandemic shutdowns. Pent-up consumer demand along with stimulus checks pushed prices for most goods and services higher while supply constraints added fuel to the fire. Lumber costs skyrocketed while oil … Continue reading...
Search Properties on HammHomes.com
Did you know you can search properties on my website? Click here to check out my full MLS search on our website! Simply enter the qualities you want most in a home and instantly view homes that match your criteria! … Continue reading...
Getting a Mortgage
How a Loan Forbearance Can Save Your House Knowing you may lose your home because you can’t keep up with the mortgage payments is a terrifying prospect. Smart Financial Planning Must Come Before Homeownership Whether you’ve got house envy about your best friend’s new place or just want to start building equity instead of renting, the first time you think about becoming a homeowner… 7 Types of Loans: Which One Fits Your Needs? Whether you’re looking for a new home or need to do some considerable remodeling, you’re probably going to need a loan. Is a Second Mortgage Your Best … Continue reading...