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mortgage interest

This tag is associated with 32 posts

Interest rates going up?

Mortgage interest rates have been very, very low for most of 10 years now.  Rumors have come and gone many times that rates would increase soon, raising concerns among prospective home buyers, and sometimes spurring short flurries of purchases.  With news this week that the Federal Reserve has raised the “Fed Funds Rate,” we’ve already seen … Continue reading

More about interest rates — what can you buy?

Assuming reasonably healthy economic conditions in the U.S. and internationally, mortgage rates will eventually rise. Sellers will continue to sell, and buyers will continue to buy, in virtually any interest rate environment, and rate changes will impact both. It is worth understanding and planning for, though. Continue reading

All the talk about interest rates …

Last week the Federal Reserve raised the “Federal Funds Rate” after years of rumors that they would do so. The media got very busy discussing what that means for the economy, and for other interest rates that are important to consumers — including mortgage loans, but whether and when mortgage rate changes might happen has very little to do with the Federal Reserve Board. Continue reading

Mortgage rate future?

I encourage my younger friends and prospective homebuyers to assume that 3.5% will NOT be the long-term mortgage interest rate. We are living in trying economic times with many historically unusual pressures. This too shall pass, and rates will begin to rise. Continue reading

July numbers are in …

General economic uncertainty aside, I believe that buyers who stay on the sidelines over the next six to twelve months — especially in the Austin area — will find that they missed the best opportunity to become homeowners we have seen in many years.
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Mortgage interest rates and monthly payments

Let’s say the rates bounced “all the way” up to 6%. What would that mean to the average homebuyer? To answer that, consider buying a $200,000 home (near the median in Austin), with a 3.5% down payment on a 30-year fixed rate FHA loan. Here’s what happens to the monthly payment (principal and interest only) as rates go up. Continue reading

So what about the debt ceiling?

Politics aside, I don’t see any practical reason that interest rates should spike next week based on what happens in the debt ceiling debate. I certainly believe we will have higher rates over the next year or two, but that will have almost nothing to do with all the noise coming from Washington now. Continue reading

Benefits Of Home Ownership

Times and markets may have changed in recent years, but the benefits of being a home owner rather than a renter are still the same. (And it’s a great time to buy now!) Continue reading

Another reason to buy soon!

This change will be effective on loans issued on or after April 18, 2011. That’s just sixty days away — plenty of time to find and purchase the right home, but not much time to remain uncertain about whether to buy or not. If home ownership is in your plans, and if you can qualify for a mortgage loan today, now is the time to get busy. Continue reading

Will higher interest rates cost you your dream home?

The difference between 5% and 6% mortage rates is about $125/month, or almost $20,000 in purchasing power. There is a real cost to delay while interest rates are increasing — an it looks like that’s the direction of change this year. Continue reading