The big news in real estate are the interest rates available today. Rates are being quoted this week around 4.75% on a 30 year fixed rate mortgage. When you compare that rate to the national average, you’d have to go back more than 30 years to find a comparable rate. Rates on 15 year mortgages are currently around 4.25%, which makes this a great time to look at purchasing a new home.
Compared to a 6% interest rate (which is still historically very low) on a 30 year, $100,000 mortgage, today’s current rate will save you approximately $78.00 per month and tens of thousands of dollars over the life of the loan. You could borrow about $15,000 more dollars at today’s rate and still keep your payment the same compared to the higher rate.
Comparing today’s 15 year mortgage to today’s 30 year rate on a $100,000 loan yields a payment approx. $230 more per month but has 180 fewer payments!!
The payment isn’t the only consideration when purchasing a new home but our budgets do define (along with the lender’s approval) what we find to be a comfortable payment. Our current market gives you the chance to get the most for your money. Call or visit my blog at http://realestatecounselor.com today so we can visit about a possible new home in your future.
Merry Christmas to you and your family, enjoy a great holiday season.
Monday, December 14, 2009
Tuesday, December 1, 2009
The big news in real estate are the interest rates available today. Rates are being quoted this week around 4.75% on a 30 year fixed rate mortgage. When you compare that rate to the national average, you’d have to go back more than 30 years to find a comparable rate. Rates on 15 year mortgages are currently around 4.25%, which makes this a great time to look at purchasing a new home.
Compared to a 6% interest rate (which is still historically very low) on a 30 year, $100,000 mortgage, today’s current rate will save you approximately $78.00 per month and tens of thousands of dollars over the life of the loan. You could borrow about $15,000 more dollars at today’s rate and still keep your payment the same compared to the higher rate.
Comparing today’s 15 year mortgage to today’s 30 year rate on a $100,000 loan yields a payment approx. $230 more per month but has 180 fewer payments!!
The payment isn’t the only consideration when purchasing a new home but our budgets do define (along with the lender’s approval) what we find to be a comfortable payment. Our current market gives you the chance to get the most for your money. Call or visit my blog at http://realestatecounselor.com today so we can visit about a possible new home in your future.
Merry Christmas to you and your family, enjoy a great holiday season.
Compared to a 6% interest rate (which is still historically very low) on a 30 year, $100,000 mortgage, today’s current rate will save you approximately $78.00 per month and tens of thousands of dollars over the life of the loan. You could borrow about $15,000 more dollars at today’s rate and still keep your payment the same compared to the higher rate.
Comparing today’s 15 year mortgage to today’s 30 year rate on a $100,000 loan yields a payment approx. $230 more per month but has 180 fewer payments!!
The payment isn’t the only consideration when purchasing a new home but our budgets do define (along with the lender’s approval) what we find to be a comfortable payment. Our current market gives you the chance to get the most for your money. Call or visit my blog at http://realestatecounselor.com today so we can visit about a possible new home in your future.
Merry Christmas to you and your family, enjoy a great holiday season.
Wednesday, November 18, 2009
Changes coming in 2010
The Good Faith Estimate (GFE) is a good way to be able to compare one home lender from another. The GFE must be provided by a mortgage lender or broker as required by the Real Estate Settlement Procedures Act (RESPA). The estimate must include an itemized list of fees and costs associated with your loan and must be provided within 3 business days of applying for a loan. The fees or closing costs, cover every expense associated with a home loan including inspections, title charges, bank fees and escrow items. By comparing GFE’s between lenders you can determine what lender may offer the best loan package for you.
However, your decision on what lender to use isn’t always based on the costs. A lender offering a lower interest rate may have substantially higher costs that when calculated over the life of the loan may actually cost you more in the long run. But again the GFE is the only way for you to be able to make an apples to apples comparison. Look for future posts about changes to a lender's good faith estimate taking effect in January 2010.
As a numbers guy, I love home financing. If you find the home of your dreams this weekend, please give me a call. I’d love to visit with you about what type and size of loan best fits YOUR needs. Call me at 308-233-4553 or email me at cory@century21midlands.com.
However, your decision on what lender to use isn’t always based on the costs. A lender offering a lower interest rate may have substantially higher costs that when calculated over the life of the loan may actually cost you more in the long run. But again the GFE is the only way for you to be able to make an apples to apples comparison. Look for future posts about changes to a lender's good faith estimate taking effect in January 2010.
As a numbers guy, I love home financing. If you find the home of your dreams this weekend, please give me a call. I’d love to visit with you about what type and size of loan best fits YOUR needs. Call me at 308-233-4553 or email me at cory@century21midlands.com.
Wednesday, November 11, 2009
Seniors buy a new home without a payment
There is a new way to help homebuyers age 62 or older purchase their ideal retirement home. The reverse mortgage for purchase program is a way for a senior to purchase a new home but WITHOUT A HOUSE PAYMENT!
This FHA insured reverse mortgage combined with the buyers down payment (possibly the proceeds of the sale of their current home) is this new financing idea now available. This program does require that this home be a senior’s primary residence but it does not come with any income or credit requirements. The size of the down payment is based on the individuals age and the older you are the less you will need as a down payment.
As long as this is the senior’s primary residence, the senior makes no monthly house payment! The original reverse mortgage balance and accrued interest is paid back at the time of the sale of the home. Of course, the senior will need to keep homeowners insurance and taxes current.
This may be just the idea for any senior thinking of finding a home all on one level, a low maintenance condo, downsizing their current home or relocating closer to family or friends.
I’d love to be your advocate in searching out this type of financing and seeing if it might be right for you. Please give me a call at 308-233-4553.
This FHA insured reverse mortgage combined with the buyers down payment (possibly the proceeds of the sale of their current home) is this new financing idea now available. This program does require that this home be a senior’s primary residence but it does not come with any income or credit requirements. The size of the down payment is based on the individuals age and the older you are the less you will need as a down payment.
As long as this is the senior’s primary residence, the senior makes no monthly house payment! The original reverse mortgage balance and accrued interest is paid back at the time of the sale of the home. Of course, the senior will need to keep homeowners insurance and taxes current.
This may be just the idea for any senior thinking of finding a home all on one level, a low maintenance condo, downsizing their current home or relocating closer to family or friends.
I’d love to be your advocate in searching out this type of financing and seeing if it might be right for you. Please give me a call at 308-233-4553.
Wednesday, November 4, 2009
Realtors are in the business of buying and selling real estate. Helping a client by representing their best interest in the purchase or sale of a home, investment or commercial property. The Realtor Code of Ethics states that “a Realtor needs to knowledgeable and competent in that practice in which they ordinarily engage in and to obtain assistance or disclose lack of experience if necessary.”
So your Realtor is not an attorney, nor a CPA or structural engineer. Be sure your Realtor is advising you to seek expertise when those specific questions arise. A Realtor’s job is to be knowledgeable and train themselves in the practice of selling real estate. There are legal, tax and structural issues (among others) that come up during the course of a sale. But be sure that your relying on a qualified source of information when making those decisions. Rely on your Realtor to provide the service of seeking out answers to all your questions.
I’d love to help you reach your next real estate goal. I won’t be afraid to say “I don’t know but will help find out” and advise you when questions go beyond my expertise and experience. Call me at 308-233-4553 or respond to this article at http://realestatecounselor.blogspot.com
So your Realtor is not an attorney, nor a CPA or structural engineer. Be sure your Realtor is advising you to seek expertise when those specific questions arise. A Realtor’s job is to be knowledgeable and train themselves in the practice of selling real estate. There are legal, tax and structural issues (among others) that come up during the course of a sale. But be sure that your relying on a qualified source of information when making those decisions. Rely on your Realtor to provide the service of seeking out answers to all your questions.
I’d love to help you reach your next real estate goal. I won’t be afraid to say “I don’t know but will help find out” and advise you when questions go beyond my expertise and experience. Call me at 308-233-4553 or respond to this article at http://realestatecounselor.blogspot.com
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