Posts Tagged: Mortgage Rates

How does mortgage amortization really work? A fixed rate loan can also be referred to as a fixed payment loan – However, the amount of principal and interest paid changes with each payment. Interest Paid – The math behind “amortization” or paying a loan off in a fixed period of time starts with the amount…

Read More

The Fed Increased Rates

The Fed increased rates at their most recent meeting. They also indicated they will likely raise rates three additional times in 2018. Please read on for more: First, who is the Fed and what do they do? The Federal Reserve Board (the Fed), controls the Fed Fund Rate and the Discount Rate. These are charges…

Read More

APR (Annual Percentage Rate) Comparing the cost of Home loans When you see a loan rate advertised, you’ll also see a corresponding APR (4.5%/4.762% APR). This Annual Percentage Rate is the total cost of your loan (interest and fees) expressed as a single number. The purpose is to give you one number for comparing multiple loans….

Read More

There’s more to comparing the costs of renting and owning a home than the dollar cost of payments.   Even with numbers like these, some still say renting is better: “Investing in a home is riskier than renting.” No risk, no reward. Besides, even studies conducted by the Federal Reserve show that owning can provide a net…

Read More

Know what factors influence the actual rate for your loan. Securing the lowest possible rate has less to do with scouring ads and more to do with the particulars of your transaction. Lenders typically pick the best scenario as the basis for advertisements. Unfortunately, best-case doesn’t apply to every loan.   Here are some factors that…

Read More

Mortgage Rate Lock

Rate Locks: Why do longer ones cost more? It’s all about risk. Between the times you make application and close your Home loan, interest rates will do what they always do – change. At times, the rate of change is exceptionally volatile, even from one minute to the next. “Locking in” your interest rate protects…

Read More

Mortgage Rates are Heating Up

Interest Rates are Heating Up! With the improving economy and expectations the Fed will soon change its monetary policy, mortgage rates are on the rise. Is there an upside to higher rates? Sure. The same economic changes that bring higher mortgage interest rates bring higher home values, too!   Before, you enjoyed a low mortgage rate…

Read More

Rising Mortgage Rates and Affordability: How Much Can You Finance with $960/Month? As rates rise, affordability dwindles. If you want more home for the same monthly payment, acting before mortgage rates rise further may be a direct path to success. Each example here shows the principal and interest payment for a 30-year, fixed-rate loan. 1-…

Read More

One Thing You Must Know About Mortgage Rates The lowest mortgage rate is the best, right? The lowest rate certainly sounds best. But did you know the lowest rate doesn’t always mean the lowest cost? Mortgage interest is just one component of the real cost of owning a home. Interest rates are a reflection of…

Read More

Saving for a home?

When prices are rising, why not let the market help you? It’s great to save up for a large down payment of 20% or more. Yet, when prices are on the rise, saving quickly enough to keep pace can be extremely difficult. In times such as these, why not let the market build equity for…

Read More

Rising Mortgage Rates

You Can’t Keep a Good Thing Down Ever try to hold a life preserver underwater? It’s hard, isn’t it? It can be equally hard for the Fed to keep Mortgage rates low against a rising tide of market expectation. The Winds of Change. The Fed’s actions to keep interest rates low have worked for a…

Read More