Mortgage News You Need…
is dedicated to the most important aspects of mortgage lending. Based on your need for a home loan, remember to check out what the latest news is.
From what it looks like, mortgage rates are still on the rise, and that seems to be the trend. Re: Mortgage News Daily-
Conventional 30 yr trend -5.280%
15 yr. – 4.710%
30yr. FHA – 4.880%
30 yr. Jumbo – 5.500%
5/1 ARM Ln – 4.200%
*Please note that these rates are a trend and not quote by me..these rates were posted 4/26/22
Housing Prices On The Rise
Out of Washington- the Federal Housing Finance Agency (FHFA) – House Price Index (HPI) states that U. S. house prices rose up to 19.40 percent in February 2022 from last year.
What this means is that you can sell your house for more than you could previously, possibly getting out what you paid for it, plus some +-, depending upon when you purchased it.
It also means that the purchase of a new home will be higher.
Is this good or bad? It depends on what goes forward from here. If you can get a loan before the interest rates and housing prices climb higher and can afford the new highs, it can be good for you. If the rates go up- not so good unless housing prices slip back some.
The Number of Delinquencies Is Currently Down
This is definitely good news as it means that borrowers are making sufficient income to pay their mortgage loans in a timely manner.
Mortgage delinquency dropped in the last quarter of 2021 to 3.40% per Realtor Magazine.
What to Remember About Housing Prices
When you purchase a home, remember that there are some takeaways that exist. Firstly, you may get a larger home, however, when the contract is written, the first fee that comes off this is the 6.00% Real Estate Agents fee @ Realtor.com. This is divided by the buyer and seller agents if there are two. This is how they get paid. It does not come from another source.
Closing Cost – If the seller pays any closing cost- that is built into your purchase price as well. So, be careful what you bargain for.
Appraised Value
If the appraiser gives the absolute sales price – what the home is truly worth…you will be okay. There should not be any inflation of anything over and above what the true purchase price related to the homes in the subject immediate area/neighborhood.
I am noting this because back during the mortgage crisis, housing prices were over the top. *a repeat – You still want the home you purchase to actually be worth what the sales price is.
*Normally when a realtor helps the seller of a home list the sales price, they have taken into consideration the closing cost they may be paying and the realtor fee. If the other homes within the vicinity of the subject are within your sales price, you should be okay.
If it isn’t, and the country hits another crisis, you will be what they call underwater -and the value of your home can be less than what you owe on it. This depends upon the loan value of your loan when it closes, and how much you pay on the principal during the term you have it in.
What Do You Want In a Real Estate Agent?
- The first quality of a Real Estate Agent should be their knowledge of finding the right home for you, one you can afford, and one that truly is worth the sales price. They have your list of requirements, they know the neighborhood you prefer to live in and the schools where you want your children to attend.
- You must tell them what you can afford. That means you must know what your intention is regarding the downpayment and closing cost.
- Most agents are aware of mortgage lending rules and regulations. The contract spells out all of their rules and will give you the real estate agent’s fee.
- The contract will also give you the amount of closing cost the seller is willing to pay. *remember this is added into the sales price
- Normally, the Realtor will show you three properties. If these do not meet your needs, you may need to seek out more properties.
- Make sure you are acquainted with the neighborhood’s prominent housing values. You do not want to be the highest price in the neighborhood or the lowest. It is preferable to be somewhere in the middle.
Always check mortgage rates from more than one source. Do not just request the interest rate, make sure you know what the mortgage points are for that particular interest rate. If that is the best rate of interest without points…you are good to go.
Paying mortgage points means that you are buying down the rate of interest to the level quoted if there are points. If you can afford and want to buy down your rate to a lower level, that is also your choice.
Know before you make an application what is available to you!!!
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