Thomas Murphy - Pine Shores Real Estate



Posted by Thomas Murphy on 9/11/2016

It is almost impossible to predict the future and predicting where mortgage rates may go can be difficult too. But if you know how to watch the indicators you will have some degree of advantage. It may help you decide whether to borrow funds or wait until rates drop. Consider that with any prediction there can always be a great deal of margin of error. Here are a few things to consider to make a more reliable mortgage rate prediction: History History can always be a good predictor. What is the economic climate? If rates are high in economic down times that you should predict that rates will rise when the same crisis hits the market. Look not only to long-term history but also to rates recent history. Watch for the changes carefully, track them by the month. Factors to consider are: Are the rates going up or down? What factors are causing them to behave in such a way? Influencing Factors Factors that influence mortgage rates can be controlled by you. One of those factors is the amount of down payment you have or if refinancing the amount of equity you have in the home. Also for consideration on the rate you will receive is your debt to income ratio and your credit score. Some factors you cannot influence include the state of the real estate market, the inflation rate and the funds available for consumers. Inflation Inflation drives most everything and always is a constant consideration of the mortgage interest. If inflation is higher, the interest rate will go up as well. Conversely, if inflation is low rates do down. Credit Availability How much credit is available? If limited funds are available than mortgage interest rates will be higher. The Bottom Line The bottom line is you have to be flexible. You can never predict what the exact mortgage rate will be. Instead, look to the factors that influence rates. This will give you an idea of where rates are and a better picture of if it is the right time for you to take on a mortgage.





Posted by Thomas Murphy on 6/22/2014

If you are thinking about buying a new home you are probably hoping to get the best value for your money on a house, but what about your home loan? The rate and terms of your mortgage can have a big impact on your wallet. This is why it is so important to shop for just the right home loan. There are two main factors to consider when shopping for a loan: the type of loan and the terms of the loan. Do your homework before looking at home loans. Even one half of a percentage point makes a big difference over the full term of the loan. A 30 year loan of $200,000 at a 5% fixed-rate, will cost you about $22,000 more in interest than if the interest rate was set at 4.5%. Other things to look at when shopping for a home loan are closing costs. Mortgage companies charge additional fees such as origination fees, title charges, appraisals and even credit checks. Make sure to consider these additional expenses when shopping for a home loan. You can also save money by not maxing out your budget. Just because you are pre-qualified for a loan doesn't mean you should spend the maximum loan amount on a home. Don't allow your total house payment (principal, interest, taxes and insurance) to exceed 28% of your gross monthly income.





Posted by Thomas Murphy on 12/22/2013

To lock or not to lock that is always the question. If you are shopping for a home loan or refinancing a mortgage, your mortgage lender will require you to lock your rate on the amount borrowed no later than five days prior to closing. Locking a rate guarantees the interest rate for a set period of time. The decision to lock or not is a question of timing your purchase or refinance with the market. Consumers can get in trouble with a rate lock because there is a deadline on when escrow needs to close. Borrowers should comparison shop loans considering the mortgage rate locks vary in time length. If you are unable to meet the deadline the costs can accumulate. Here are some common options: 15-day lock: Is the “lowest-cost rate” available. The loan needs to be approved by underwriting to take advantage of this lock. 30-day lock: This is the fair market rate and is most commonly used for interest rate locking upfront before loan approval. 45-day lock: Used for transactions taking longer, whether the loan is approved or not. 60-day lock: Can be used in circumstances where the loan is prolonged. This option does not usually offer the best interest rate for the consumer. Interest rates can vary by as much as 0.25 percent on the longer rate locks compared against 30-day and 15-day rate locks. The bottom line, the longer the lock, the more risk the lender takes and the slightly more costly the loan.    





Posted by Thomas Murphy on 11/7/2011

Mortgage rates have been at all time lows but if you haven't taken the plunge it may now be time to refinance. This week the average rate on the 30-year fixed mortgage fell to 4 percent. Just a few weeks ago the lowest rate ever was 3.94 percent, according to the National Bureau of Economic Research. The average rate on the 15-year fixed mortgage fell to 3.31 percent from 3.38 percent. Four weeks ago, it too hit a record low of 3.26 percent. Rates are dropping in reaction to the financial turmoil in Europe and homeowners with rates over 5% should may want to research refinancing. You can check out daily mortgage rates here. Make sure to consult with a mortgage professional who can evaluate your personal situation.




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