NY Mortgage

The Mortgage Scoop
You are here: Home / Archives for Low Rates

What To Do Before Interest Rates Rise

by

What To Do Before Interest Rates RiseMortgage rates are still low, but they are going up. This is creating a rush of people looking to buy homes before interest rates rise again. While it is difficult to predict when rates will go up again, it is hard for rates to go any lower. Homeowners and buyers need to act now before rates go up. What should homeowners do before rates rise?

Sell Now While Rates Are Low

Anyone who is thinking about selling their house should make every effort to do so now before rates go up again. Because there are so many people who are looking for houses, sellers can get top dollar for their homes, maximizing their profits. This is a great opportunity to move into a larger house to accommodate children, sell a home and downsize, or even sell and move somewhere else with work conditions changing. Interest rates will probably rise in the next few years, forcing buyers out of the market. This could make it harder for sellers to get top dollar for their homes in the future.

Refinance Now While Rates Are Low

In addition, now is a great time to refinance a current mortgage. Homeowners who have been in their homes for a few years might be able to refinance their loans to lower interest rates. This could allow homeowners to lower their monthly payments, pay their homes off sooner, or access equity in their homes to complete an expensive repair process or renovate a portion of their homes. Instead of having to move to a new home, homeowners might be able to upgrade their current living situations by accessing equity through a refinance. Even a small change in interest rates could have a significant impact on the monthly payment.

Act Now While Interest Rates Are Low

These are just a few of the moves homeowners need to make before interest rates rise again. Because interest rates are still low, there are many people looking to buy a home and many others looking to refinance. Even if interest rates rise slightly in the future, this can have a massive impact on the market. All homeowners and buyers need to take advantage low interest rates before they rise. This includes moving up, refinancing, and downsizing.

Where Is The Housing Market Going Next?

by

Where Is The Housing Market Going Next?There are many people wondering where the housing market is going next. While interest rates might be low, attracting a lot of buyers, there are some potential homeowners who are concerned about the current demand in the housing market. This could be driving up home prices, causing some people to pause. Furthermore, some people might be hesitant to sell because they are worried they might have a hard time finding a new home in the current market.

What do the experts have to say?

Homes Might Start To Sell Faster

As the weather begins to warm up, the traditional moving season is unfolding. A lot of people like to wait until the late spring and early summer to move because they are worried about pulling their kids out of school. Therefore, there is a great chance that homes may sell faster between now and the middle of the summer.

The Impact Of The Pandemic

During the past year, a lot of sellers have been hesitant to list their homes because they were concerned about their personal safety. They wanted to expose themselves to as few people as possible. Now that many people are getting vaccinated, some experts believe that sellers might be more open to selling their homes now. As a result, more inventory could come on the market, helping to deal with the demand.

Competition Could Start To Ease Up With New Home Construction

Another trend that many experts are looking at involves new home construction. During the pandemic, global supply chains were strained, making it hard for construction workers to get the materials they needed to build new homes. Now that many businesses are starting to open up again, it is possible that new home construction could start to catch up with current demand. This might also help to ease competition among buyers, adding to the supply.

The Future Of The Housing Market Is Bright

Regardless, the future of the housing market is bright for buyers and sellers alike. Right now, there are a lot of people who are looking for homes, which is great for sellers. As more inventory arrives on the market, buyers will have more options available as well.

Buy A Home This Year To Build Wealth

by

Buy A Home This Year To Build WealthIt is important for everyone to diversify their investments. When people hear this term, they usually think about diversifying their investments across stocks, bonds, and mutual funds. In addition, it is also a prudent idea to leave the traditional financial markets and look for other sources of wealth as well.

This includes real estate. Without a doubt, this has been a challenging year. At the same time, those who are looking to build wealth should consider purchasing a house this year. There are several reasons why.

Mortgage Loans Are At Historic Lows

Those who have checked mortgage rates recently have probably found that they are close to historic lows. Therefore, a lot of people who would otherwise not be able to afford a home might be able to purchase a home at a relatively low price. Because interest rates are so low, this has the potential to save someone tens of thousands of dollars over the life of the loan. Even those who already have a mortgage are refinancing their homes anyway because of the significant difference. It is not often that homeowners have the opportunity to purchase a home at such a low price. 

Real Estate Values Are Likely To Rise In The Future

Even though it is impossible to protect the real estate market with 100 percent certainty, there is a solid chance that real estate values are likely to rise in the future. Because the real estate market is depressed right now, many people believe that the only place the market has to go is up. There is no telling when the market is going to be this low again. As a result, those who are looking to make an investment in the real estate market should take advantage of the unique opportunity at the present time. 

Diversify Investments In Real Estate To Build Wealth

Ultimately, there are a lot of challenges regarding looking for a home right now; however, those who are able to take advantage of the current opportunity have a chance to build wealth. Even though this might not be the perfect time to buy a home, it might be as close as the market gets. Consider looking for a new home today.

 

Getting A Lower Interest Rate During A Refinance

by

Getting A Lower Interest Rate During A RefinanceThere are a lot of people who have spotted the record-low mortgage rates right now and are wondering if they can refinance successfully. While many people apply for a refinance of their current home loan, not everyone will be approved. Furthermore, a home refinance is not the best option for everyone. Those who want to qualify for record-low refinance rates need to keep a few key points in mind.

Be A Strong Refinance Candidate

First, homeowners need to make sure that it is actually worth their time to refinance to a lower home mortgage rate. In general, homeowners want to make sure they are able to save at least three-quarters of a percentage point when compared to their current home loan to make a refinance worth their while. If they cannot save this much money on their home loan, then they may end up spending more money on the refinance in closing costs.

Act Quickly

The real estate market is volatile right now. Therefore, home refinance rates are often moving targets. As a result, the interest rates that are published this week could change in the span of a few days. By the time loan packages are returned to the lender, the rates might not even be accurate anymore. Therefore, all homeowners need to be willing to act fast. Have pay stubs, bank statements, and tax returns ready to go when the lender asks for it.

Have The Money For Closing Costs

One of the most common reasons why homeowners lose out on the best interest rates is that they do not have the money ready to pay closing costs. By the time the homeowners get the money together, the refinance rate might have passed them by. Usually, closing costs fall somewhere between two percent and five percent of the total loan amount and this amount is usually due at signing.

Qualify For The Best Mortgage Rates During A Refinance

With mortgage rates falling to record lows, now is a good time for many homeowners to refinance. On the other hand, homeowners need to set themselves up to qualify for the lowest mortgage rates. Following these steps can place homeowners in a position to be successful when they apply for a refinance.

Buying A Home With Cash Versus Low Interest Rate Mortgages

by

Buying A Home With Cash Versus Low Interest Rate MortgagesThe real estate market has been in flux during the past few months. As a result, this could be a great time to both buy and sell a home. This is because mortgage rates are attractive for borrowers right now. With so many people who are looking to buy a home, is likely the people selling a home are going to receive multiple offers. On the other hand, given what the mortgage market looks like right now, borrowers also have attractive options.

As a result, many people are wondering if they should buy a house with cash or take advantage of low interest rates. For homebuyers in this position, there are a few important points to keep in mind. 

Consider What The Cash Can Do

Ultimately, a decision to buy a house with cash or taking advantage of low interest rates is going to be a personal decision. At the same time, there are several factors to consider. One of them involves what the cash is going to be used for. For example, many people have heard the saying that cash is king. Buying a house with cash might be right for some people. 

On the other hand, there might be some individuals or families who can put this cash to better use elsewhere. For example, if this cash is needed to buy a new car, fun retirement, or pay for someone’s education, then the cash might be better spent in this area. It is important to think about how this cash will be spent when deciding whether or not to use it to buy a home. 

The Competitiveness Of A Cash Offer

It is also important to consider the advantages of buying a house with cash. In addition to the obvious benefit of not having a mortgage payment, a cash offer is also going to be seen as more competitive. With so many people looking to buy a house right now, it is critical for homebuyers to appear competitive right off the bat. 

A cash offer is always going to look better than someone who is trying to take out a loan because the transaction is simpler, faster, and provides the seller with an instant source of liquidity. 

These are a few of the most important points that people should keep in mind when deciding how they are going to purchase a home.