The big question in the mortgage industry is when the rates are going to go up. There’s been talks about it being in March which may be the truth. The Federal reserve is looking to raise its benchmark interest rate this month as long as the economic data remains strong.
The Federal Reserve has hinted March 14-15 will be the meeting that could bring a rate hike. Rate hikes are likely to rise faster this year as the economy appears to be growing with few hurdles and the risks have receded substantially. We will soon see what impact this will have on the industry.
If you’ve read some of our earlier articles you already know that getting a decent mortgage rate is simple. Any loan officer can slap down a number and make you think you’re getting the best rate, but how do you really know that you’ve got the best mortgage rate around? The truth is, with only common mortgage knowledge, you won’t. You need to know exactly what lenders are looking for. Luckily for you, the wonderful people here at Valley West Mortgage have comprised this promising little cheat sheet for you, because let’s face it, our customers are always on our minds.
Shopping for a new home is almost like shopping for a new car, you’ve got to compare the prices. But wouldn’t it be great if you didn’t have to be the one to compare them? A great mortgage rate can only be found by the most skilled professionals, those who know the business and speak the language. You could call in to Valley West Mortgage today and know that you would be presented with the best rates our Loan Officers can find. Your Loan Officer will also speak to you about down payments. About twenty percent of your total loan amount is money that you will use to put down on your house and to get a better mortgage rate.
Another factor that you need to look at, one that can be vital to the mortgage rate you will qualify for, is your credit score. Rob Berger, a contributor to Forbes’ online magazine, says “According to myFICO.com, the best mortgage rates are available to borrowers who have credit scores of 760 or above. As your score goes lower, your interest rate goes up. The lowest score needed to qualify for a mortgage is 620. At today’s mortgage rates, however, a score of 620 will qualify for a rate of 5.022%, while those with a score of 760 or higher will enjoy a lower rate of about 3.433%”. Monitor your credit ladies and gentlemen, and be sure to fix any blemishes that could negatively affect your qualifying rate.
Monitoring your credit, also means monitoring your Debt to Income ratio. Your debt to income ratio allows lenders to look over your spending and make sure that if and when they lend you the money for your home, you will be able to pay the loan back in a set amount of installments. Lenders also want to see a steady flow of income and that means having a steady job. In the mortgage business, a steady job is employment that has been carried out at the same location for a minimum of two years. A steady job translates to a steady flow of finances.
In a nutshell, it takes a little bit of know-how and a lot of preparation to put yourself in line for the best mortgage rates. Once you’ve organized your finances, found a fantastic lender, and have read over these tips, we have confidence that you’ll do just fine.
The time to finance a home for the best rate could be now, as mortgage rates across the country have reached a low over the last 16 months at 4.12 percent, according to Freddie Mac.
This number is quoted for a 30-year fixed rate conventional mortgage, and since Jan. 1, people have been finding themselves able to afford about 8 percent more of a home in terms of quality. Las Vegas, in particular, may be experiencing their home rates flattening out as the median home price reached $200,000 in August, which is an almost 10 percent increase from the same time last year, according to a recent report from the Greater Las Vegas Association of Realtors (GLVAR). This is good news for home owners and buyers as the economy continues to recover from the recession that severely impacted the value of property nationwide.
Although property values increase as pricing begins to level, low mortgage rates are not necessarily available to everyone. Those who will see the lowest rates would be considered prime lenders, defined by Freddie Mac as a lender with a credit score over 740 and who can offer a 20 percent down payment. This, however, should not discourage those from financing a home.
If you’re interested in mortgage rates in the greater Las Vegas area, please contact Valley West Mortgage at 702-696-9900 or firstname.lastname@example.org
Mortgage rates were lower yet again, for the 10th consecutive day without rates moving higher. Since the September 6th jobs report, rates have only risen once. Conforming, 30yr Fixed rates are now down to 4.375% (4.375%) or amazingly efficient combinations of closing costs and rates though several lenders. Everyday we receive more proof that the FOMC announcement and recent Employment Situation Report marked and confirmed at least a short term turning point for interest rates. This is the correction that we'd been hoping for, and we're now a day or two into it with high hopes.
Matthew Graham - Chief Operating Officer, Mortgage News Daily / MBS Live wrote in an article today: "Markets are comfortable treating early September rates as near term highs as long as the economic data doesn't surprise to the upside. That means that the fate of rates is tied to the economic reports that come out most mornings. Stronger data will gradually persuade investors that the Fed will reduce the pace of bond buying sooner than later. On some small scale, that was a risk this morning, but Consumer Confidence came in slightly weaker than forecast, and rates continued to improve. We'll face similar risks with tomorrow's data, but it will either take a concerted effort from several reports or a strong Employment Situation report on Oct 4 to completely dash the dreams of this low-rate rebellion. Between now and then we'll likely see some ups and downs, as opposed to the exclusively flat-to-sideways bias we've had since Sep 6th."