Tag Archives: interest rates

Money Monday: Saving for major expenses

Here’s a quick estimate on how much you should save per major expense.

save money

Photo by 401kcalculator.org

“With interest rates going up, the cost of borrowing money to pay for major life expenses is also going up. The Federal Reserve has already raised the interest rate three times this year and will most likely raise rates again before the year is out. After years of relatively unchanging rates, it’s become more important for consumers to plan for major expenses. Planning can include researching prices, creating a budget and – most importantly – saving as much as possible to put toward the goal.

“The key to preparing for any major expense is knowing how much to save. While everyone’s financial situation is different, there are some rules of thumb to keep in mind for most major expenses.”

Read the rest of U.S. News’ article here: “How Much Should You Save to Fund Major Expenses?”

Money Monday: Interest rate impact

As interest rates increase, it affects home buyers’ monthly payments, as well as the amount of income needed to qualify to buy a home.

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS. 

Money Monday: Rising mortgage rates

While mortgage rates are still low, they have been rising lately — but many experts are worried.mortgage rates and property taxes

“The average rate for a 30-year fixed-rate mortgage rose to 4.16%, up from 4.13% last week, according to Freddie Mac. A year ago, rates were sitting around 3.97%.

“At the current interest rates, buyers will pay $21 more per month compared to a year ago, assuming a $241,000 price tag and 20% down payment.”

Read more of this article at Money.CNN.com.

Money Monday: Shopping for Interest Rates

While interest rates have remained at low levels, many analysts are predicting that mortgage rates will be heading upward. With this in mind smart homeowners are rushing to lock in the low rates. The following tips will help interested homebuyers in shopping for the best rate.

mortgage rates and property taxes

How to shop: If you simply call up and ask a lender for interest rates the lender can tell you almost anything. One lender might offer a floating rate, while the next would offer you a forty day rate. Instead, before you call up you need to know two things: how many points you want to pay and how long you want to lock in the rate. You also want to call all the lenders on the same day. This way you will get a common basis of comparison for the different quotes.

Getting a reliable quote: Beware of lenders who promise unreasonable low rates. This does not mean that lenders are unreliable; however there is an incentive for the lender to fudge the quote in order to gain your business (the bait). Then when you go in to fill out the paper work the lender will change the rate on you (the switch).

How to Really Shop for a Lender: The best way is to get a referral, then shop other lenders. Do it properly, telling the lenders how much you are willing to pay in points and how long you want to lock in the rate. Make all your calls on the same day. Tell the lender you have filled out an application and that you will fax it in, so the rate has to be something he can deliver.

Money Monday: Mortgages are still getting cheaper

Mortgage rates are dropping.

“In December, when the Federal Reserve raised rates for the first time in nearly a decade, many would-be homebuyers assumed it meant the beginning of the end for record-low mortgage rates.

mortgage rates and property taxes

“‘This is evidence that the Federal Reserve isn’t the sole determinant of U.S. mortgage rates,’ said Mark Hamrick, senior economic analyst at Bankrate.

“The 30-year mortgage rate fell to 3.79%, the fourth straight week of declines, according to Freddie Mac. A year ago, the rate averaged 3.66%.

“The rate on a 15-year fixed mortgage also dropped to 3.07%…

“…But tight inventory has helped push home prices higher, creating an affordability problem in many markets throughout the country.

“In response to the lower rates, mortgage applications ticked up 8.8% last week.”

Read the rest of CNN’s article here: money.cnn.com/2016/01/28/real_estate/mortgage-rates-fall

 

Money Monday: Top 10 tips for mortgage borrowers in 2016

Interest rates on mortgages hovered around 4% throughout 2015 but are expected to reach 4.5% by the end of 2016, according to the National Association of Realtors.

Bunch of kets in front of pile of cents

If you’re planning on capitalizing on these still-low interest rates by becoming a homeowner this year, consider these tips:

1. Improve your credit

2. Save up for a down payment

3. Get a mortgage preapproval

4. Look around for a lender

5. Consider loan types

6. Pick the home and location based on your lifestyle

7. Budget for all the other homeowner expenses

8. Ask for help from a professional (Call me if you don’t have a Realtor!)

9. Remember to have enough for closing costs

10. Save!

Read the full article and all of its advice on the Yahoo! finance site: finance.yahoo.com/news/top-10-tips-mortgage-borrowers-100000055

Housing Becoming Less Affordable

Real estate prices and interest rates are on the rise.

Both rising interest rates and higher-priced homes the first part of 2015 are lessening home affordability for would-be homebuyers.

  • Only 30% of potential homebuyers can afford the average-priced, single-family residence
  • The median price of a single-family home is $485,100
  • To qualify for a home loan to buy such a home, the average annual income needed is $96,160
  • The median-priced home requires a monthly payment of $2,404 (which includes taxes and insurance on a 30-year, fixed-rate loan)

PricesontheUptickInfographic from CALIFORNIA ASSOCIATION OF REALTORS.

San Diego housing market in 2013

“Historically low interest rates and limited inventory in 2013 fueled some of the greatest housing appreciation in San Diego County since the early 2000s…

home buying

“San Diegans bought 42,702 homes last year, a slight uptick from 2012 but the most since 2006, the last full year before the Great Recession.

“Last year was a great year for investors, who in June enjoyed 24.1 percent annual appreciation — a post-Great Recession record — to a median price of $420,000…”

Read the rest of Union-Tribune San Diego’s article on 2013’s real estate market in review here.