03 Nov 2020
By Kevin Gahagan

How To Negotiate A Better Mortgage Rate

Mortgage

How To Negotiate A Better Mortgage RateFor those who are thinking about buying a house in the near future, they want to make sure that they get the best mortgage rate possible. At the same time, if people who want to reduce the interest rate on their mortgage, then they need to do everything you can to make yourself as attractive as possible to lenders. When they are negotiating for a better rate on your mortgage, they need to keep a few important points in mind.

Make A Larger Down Payment

If people want the lender to reduce the interest rate on your mortgage, then borrowers need to think about making a larger down payment. By doing everything they can to reduce the risk they present to the lender, they will be rewarded with a lower interest rate. If borrowers are willing to put more money down, then that is less money that the bank has to lend out. Therefore, the risk the bank takes on is going to be reduced and borrowers will be rewarded with a lower interest rate. Make a larger down payment to reduce the interest rate on the mortgage.

Improve the Credit Score

Another way that people can reduce the risk that they present to the bank is to improve their credit score. What can borrowers do to make this happen? They can check your credit report first and correct any inaccuracies that might be present. After this, they should take a look at any existing debt they have and try to pay down as much of it as possible. By reducing the amount of debt they owe, the credit score will improve, helping them qualify for a lower interest rate on their mortgage.

Take Advantage Of Discount Points

Those want to reduce the interest rate on your mortgage, could use something called discount points. These are points that the borrower will pay directly to the lender in exchange for a lower interest rate. By providing the lender with more money up front, they can secure a reduced payment over the life of the loan.

Reduce the Interest Rate

These are a few of the fastest ways that people can secure a lower interest rate on their loan. This can save them a tremendous amount of money.

29 Oct 2020
By Kevin Gahagan

The Required Steps For A Smooth Mortgage Refinance Process

Mortgage

The Required Steps For a Smooth Mortgage Refinance ProcessThere are lots of people who have heard that one of the top ways to ensure the best mortgage rate possible is to refinance. At the same time, it is critical to make sure that this process is planned out accordingly.

Therefore, there are a few steps that everyone has to follow to make sure they are able to handle the mortgage refinancing process in a smooth manner that leads to the best rate possible.

Ask If A Refinance Is The Right Step

There are a lot of people who assume that a mortgage refinance is a financial win; however, it is important to keep the added costs in mind. For example, the refinancing process is going to lead to another closing. When this happens, there are going to be closing costs that must be considered.

Therefore, the refinancing process could lead to a higher mortgage payment if the money saved on interest payments is not enough to offset these costs.

Check The Credit Score First

Many people get lured into the refinance process by looking at low mortgage interest rates and assuming they are going to qualify for them; however, this is not always the case. Only the people with the top credit scores are able to qualify for these low rates. Therefore, everyone needs to take a look at their credit score and make sure that their credit report has been cleaned up. This is the only way that people are going to be able to qualify for these low rates.

Talk To A Trained Professional

Finally, many people are going to be going through the refinance process for the first time. It is important to work with a trained professional who can walk everyone through this process, ensuring that they know what they are doing as the process unfolds. This can go a long way toward ensuring that everyone has a successful refinancing experience.

Go Through The Right Steps

Following these steps can maximize everyone’s chances of making sure they end up with a refinance that works for them. By planning out the process ahead of time, everyone can go through the steps they need to make sure that the refinancing process proceeds as smoothly as possible.

26 Oct 2020
By Kevin Gahagan

What’s Ahead For Mortgage Rates This Week – October 26, 2020

Financial Fraud

What's Ahead For Mortgage Rates This Week - October 26, 2020Last week’s economic reporting included readings from the National Association of Home Builders on housing markets, and Commerce Department readings on housing starts and building permits issued. Data on sales of previously-owned homes were also released. Weekly readings on mortgage rates and jobless claims were also released.

NAHB Housing Market Index Rises in October

The National Association of Home Builders reported an index reading of 85 for their Housing Market Index in October. This was the third consecutive month the HMI had a record reading and was the second consecutive month the index achieved readings over 80. Readings over 50 indicate that most home builders are confident about housing market conditions.

Component readings of the Housing Market Index also rose in October. Builder confidence in current housing market conditions rose two points to 90. Builder confidence in housing market conditions over the next six months rose three points to an index reading of 88, and builder confidence in buyer traffic in single-family housing developments was unchanged at an index reading of 74. Until recently, buyer traffic readings typically remained below 50.

Regional confidence readings were mixed; builder confidence in the Northeast rose by seven points to an index reading of 88. Builder confidence also rose by seven points in the West but was one point lower in the Midwest with a reading of 77. Builder confidence was two points lower in the South with an index reading of 83.

Commerce Department Reports Increases in Housing Starts and Building Permits

Housing starts and building permits issued rose in September; housing starts rose to a seasonally-adjusted annual pace of 1.415 million starts. Analysts expected a reading of 1.45 million housing starts based on August’s reading of 1.388 million new single-family homes started.

Building permits issued also rose in September with 1.553 million permits issued on a seasonally-adjusted annual basis and exceeded August’s reading of 1.476 million permits issued and 1.518 million permits expected.

Mortgage Rates, Jobless Claims Fall

Freddie Mac reported lower average mortgage rates last week as the rate for 30-year fixed-rate mortgages fell by two basis point s to 2.80 percent; mortgage rates for 15-year fixed-rate mortgages averaged 2.33 percent and were two basis points lower. The average rate for 5/1 adjustable rate mortgages fell by three basis points to 2.87 percent. Discount points averaged 0.60 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

Initial jobless claims fell to 787,000 new claims filed as compared to the prior week’s reading of 842,000 new claims filed. Last week’s reading for all initial claims filed fell below 800,000 claims for the first time since the pandemic started. Ongoing jobless claims also fell last week with 8.37 million continuing claims filed as compared to 9.40 million continuing jobless claims filed in the prior week.

Sales of previously-owned homes rose in September at a seasonally-adjusted annual rate of 6.54 million sales. Analysts expected 6.36 million sales based on August’s reading of 5.98 million sales. Low mortgage rates and demand for homes continued to boost home sales.

What’s Ahead

Readings on new and pending home sales, Case-Shiller Home Price Indices, and consumer sentiment will be released this week. Weekly readings on mortgage rates and jobless claims will also be published.

12 Oct 2020
By Kevin Gahagan

What’s Ahead For Mortgage Rates This Week – October 12, 2020

Financial Reports

What's Ahead For Mortgage Rates This Week - October 12, 2020Last week’s economic reporting included readings on inflation,  job openings, a speech by Fed Chair Jerome Powell on the economy, and the latest Consumer Sentiment Index from the University of Michigan. Weekly reports on new and continuing jobless claims and mortgage rates were also released.

Hiring Surge and Job Separations Ease in August

The U.S. Department of Labor reported fewer job openings in August with 6.49 million job openings reported as compared to July’s reading of 6.70 million jobs available. Analysts noted that this indicated a slowdown in hiring after businesses re-opened when COVID-19 restrictions lapsed. Job separations, which include quits, layoffs. and terminations were also lower with 4.50 million job separations reported in August as compared to 4.99 million separations reported in July.

Fed Chair Says Economy Needs More Fiscal Support

Federal Reserve Chairman Jerome Powell said that the U.S. economy could use more support in a speech made to members of the National Association for Business Economics. Mr. Powell said, “Too little support would lead to a weak recovery, which would lead to  creating unnecessary hardships for households and businesses.”

Mr.Powell said that if too much assistance was provided, it would not go to waste; he also said that the economic recovery would be stronger and move faster if monetary policy and fiscal policy continue to work side by side to support the economy until it is clearly out of the woods. Forecasts of increased COVID-19 cases during fall and winter indicate the importance of additional economic relief measures.

Mortgage Rates Little Changed; as Jobless Claims Fall

Freddie Mac reported incremental changes in average mortgage rates last week. Rates for 30-year fixed-rate mortgages averaged 2.87 percent and were one basis point lower. The average rate for 15-year fixed-rate mortgages was one basis pint higher at 2.37 percent. The average rate for 5/1 adjustable rate mortgages fell by one basis point to 2.89 percent. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages and 0.70 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.20 percent.

New jobless claims fell to 840,000 claims filed as compared to 849,000 initial claims filed in the prior week. Continuing jobless claims also fell last week. 10.98 million continuing jobless claims were filed as compared to the prior week’s reading of 11.98 million ongoing jobless claims filed.

What’s Ahead

This week’s scheduled economic reports include readings on inflation, retail sales, and consumer sentiment. Weekly readings on mortgage rates and jobless claims filed will also be released.

24 Sep 2020
By Kevin Gahagan

Buying A Home With Cash Versus Low Interest Rate Mortgages

Mortgage

Buying A Home With Cash Versus Low Interest Rate MortgagesThe real estate market has been in flux during the past few months. As a result, this could be a great time to both buy and sell a home. This is because mortgage rates are attractive for borrowers right now. With so many people who are looking to buy a home, is likely the people selling a home are going to receive multiple offers. On the other hand, given what the mortgage market looks like right now, borrowers also have attractive options.

As a result, many people are wondering if they should buy a house with cash or take advantage of low interest rates. For homebuyers in this position, there are a few important points to keep in mind. 

Consider What The Cash Can Do

Ultimately, a decision to buy a house with cash or taking advantage of low interest rates is going to be a personal decision. At the same time, there are several factors to consider. One of them involves what the cash is going to be used for. For example, many people have heard the saying that cash is king. Buying a house with cash might be right for some people. 

On the other hand, there might be some individuals or families who can put this cash to better use elsewhere. For example, if this cash is needed to buy a new car, fun retirement, or pay for someone’s education, then the cash might be better spent in this area. It is important to think about how this cash will be spent when deciding whether or not to use it to buy a home. 

The Competitiveness Of A Cash Offer

It is also important to consider the advantages of buying a house with cash. In addition to the obvious benefit of not having a mortgage payment, a cash offer is also going to be seen as more competitive. With so many people looking to buy a house right now, it is critical for homebuyers to appear competitive right off the bat. 

A cash offer is always going to look better than someone who is trying to take out a loan because the transaction is simpler, faster, and provides the seller with an instant source of liquidity. 

These are a few of the most important points that people should keep in mind when deciding how they are going to purchase a home.