Recently one of my clients asked me if they should apply for a 15 or 30 year mortgage. They’ve been advised by parents and co-workers that a 15 year mortgage is the way to go. They want a 15 year mortgage because it has a lower interest rate and their home would be paid off sooner. The only fly in the ointment is the payment will be higher than they want to pay each month.
Yesterday the Fed's meeting voted to keep the Fed Funds Rate near zero percent while warning that members will decide future rates on a meeting-by-meeting basis. I asked Buzz Mackintosh of Mackintosh Inc, REALTORS to explain for our readers what Fed's warning means and how it will change today's low mortgage rates. This is what Mackintosh said to HULIQ.com in a written reply.
Mortgage disclosure forms will be changed and new forms will be implemented this month. New government rules, which require mortgage loan lenders to provide borrowers more detailed information about their mortgages will go into effect this month. Home loan lenders are now required to explain mortgage loan terms to home buyers in unprecedented detail.
The CFPB (Consumer Financial Protection Bureau) is an agency that sole responsibility is to protect consumers as it relates to financial transactions while enforcing TRID (Truth in Lending Act/Real Estate Settlement Procedures Act (RESPA) Integrated Disclosures. There are two new documents that a consumer will receive after applying for a home mortgage; LE- Loan Estimate and CD- Closing Estimate. Below is a brief description of each and the documents they are replacing.
After between 2011 and 2012, many real estate investors started picking up rental properties with their own cash. Those who had primarily focused on purchases for quick resale leading up to 2011, began to shift focus. Once competition among “flippers” spiked in many U.S. markets, demand increased in the buy and hold category.
The average long-term mortgage rates in the US fell this week, marking the 13th consecutive week below 4 percent. These low interest rates offer incentives to potential home buyers, but what is limiting the housing sector's growth?
Not a day goes by that I don't hear some realtor or lending spouting off about how mortgage interest rates are going to rise (1st quarter 2016) and when that happens, buyers will not be able to afford as much house, so you better consider buy now.