Offbeat Ready to buy a home? Lock in your mortgage rate now

18:06  17 may  2018
18:06  17 may  2018 Source:   cbsnews.com

Banks are walking away from low-income homebuyers

  Banks are walking away from low-income homebuyers Banks have been walking away from low- and moderate-income homebuyers seeking loans and that has affordable housing advocates worried.Newly released federal data on mortgage lending from the Consumer Financial Protection Bureau shows people with low and moderate incomes made up only 26.3% of borrowers in 2017, down from 36.6% in 2009.

Whether you’re buying a home or refinancing your mortgage , don’t let anything stand in your way. If you’re approved, the next step is to lock your rate . Customize Your Rate , Costs and Term. Once you’ve adjusted your loan and are ready to move forward, click See if I’m Approved.

When you're ready to meet face-to-face with a Mortgage Originator, simply call (937) 912-7000 or (800) 762-0047 Am I able to lock in my loan rate ? Yes, we offer a variety of rate lock options. Repayment terms are available up to 15 years. FAQ: Buy A Home > Mortgage Loans. Expand all.

Buying into the American dream of homeownership is getting pricier. A confluence of factors has made for a seller's market across much of the country, with buyers already sidelined by limited supply and lofty prices. But this week they're confronting another hike in borrowing costs.

"Rising mortgage rates are further squeezing affordability for would-be homebuyers that are already frustrated by limited inventory of available homes and the higher home prices that have resulted," Greg McBride, chief financial analyst at Bankrate.com, said in emailed comments.

The ability to afford a home is becoming a bigger hurdle as increases in property values outrun growth in income and as interest rates climb.

First-time homebuyers learn to move quickly in tight markets

  First-time homebuyers learn to move quickly in tight markets Seasonal demand from buyers is increasing as usual, but shoppers are finding a lack of new listings. Also daunting: coming up with a down payment. Based on the median home price, a down payment of 20 percent — a longtime rule of thumb — would be more than $50,000. Amassing that much cash can be difficult. The average savings of people who do not own homes was $5,200 in 2016, according to the Realtors association, citing Federal Reserve data.In reality, however, many home buyers make much smaller down payments.

To simplify the mortgage rate - lock decision, keep these things in mind Most lenders won’t lock you for less than 30 days unless you’re ready to close and often offer the same rate for a 15- and 45-day period. The Rubins were buying a four-bedroom, 2,200-square-foot home in Westchester County

A mortgage rate lock is a written agreement between a homebuyer and a lender that guarantees the mortgage interest rate according to certain conditions. Request the rate lock .[16] When you are ready to lock in your rate , contact your lender. Refinance Your Mortgage . How to. Buy a House.

The benchmark used in setting rates for loans including home mortgages is the 10-year Treasury note, and on Wednesday it held near seven-year highs, just a tick below 3.1 percent. That's hiking borrowing costs for consumers, businesses and the government.

For those looking to purchase a home, this week's rate increase would tack on about $20 a month to your mortgage payment, which is "not going to make or break anyone" already positioned to make the purchase, Aaron Terrazas, Zillow's senior economist, told CBS MoneyWatch.

The traditional 30-year, fixed-rate home loan currently stands at 4.55 percent, up from 4.05 percent a year ago.

While most Americans buying homes sign up for a 30-year loan, they typically decide to move within seven to 10 years, "making the 10-year Treasury the best and most liquid benchmark for that mortgage rate," Terrazas explained.

Deducting home loans interest is trickier under new tax rules

  Deducting home loans interest is trickier under new tax rules If you are looking to take a mortgage or home equity loan, you need to know how the tax changes may impact youThe new rules generally limit the deductibility of mortgage interest on up to $750,000 of debt for acquiring a home. In some cases, the new rules also disallow deducting the interest on home equity loans used in many common transactions.

It’s no secret that mortgage rates are constantly fluctuating. This can be tricky for home buyers who are waiting to buy until they can secure the lowest possible rates . Many lenders won’t lock your rate for less than thirty days unless you’re immediately ready to close.

Ready to close on your mortgage quickly? We can approve you in minutes – apply now . Need help finding your home ? After reviewing your application with a Mortgage Representative you are able to lock in your rate . Is there a fee to lock my rate ?

Borrowing costs, which held at about 7 percent from 1985 to 1999, a stable period in the U.S. housing market, are on their way higher, so it's a good time to nail down a loan, said Terrazas.

The increase in borrowing costs is not unexpected, considering that the Federal Reserve is raising its lending rate and selling off its investments in mortgage-backed bonds, he noted.

"We know inventory is tight, but if there's a chance of finding your dream home in the next 30 days," it would make sense to lock in a mortgage rate, said Terrazas. "Given the trend in the past six months has been upward, and moves by the Fed are going to push up short-term interest rates."

A larger hurdle for homebuyers is the short supply and higher prices, the Zillow economist added.

"Nationally, single-family housing completions dropped 4 percent in April, putting the supply of single-family homes for sale near all-time lows, pressuring housing prices." Kathleen Navin and Patrick Newport in said in emailed commentary of government data.

Figures from the Mortgage Bankers Association illustrate the rising borrowing costs and strong demand for mortgages. Fewer consumers are refinancing their home loans compared to a year ago, when interest rates were lower, while applications to buy a home are 10 percent higher, according to the MBA data.

Mortgage rates surge to their highest levels in 7 years

  Mortgage rates surge to their highest levels in 7 years <p>A sharp sell-off in the bond market is sending mortgage rates to the highest level in seven years.</p>The average contract rate on the 30-year fixed will likely end the day as high as 4.875 percent for the highest creditworthy borrowers and 5 percent for the average borrower, according to Mortgage News Daily.

This provides a very stable and predictable monthly payment and in today’s low rate environment, can help lock in a historically low interest rate for a mortgage . Find out if you should buy a home , what a good deal looks like, and how to get the best mortgage .

Home Buying · Mortgage Rates · Mortgage Strategy. When Should I Lock In My Mortgage ? March 9, 2017. Gina Pogol. How To Close Quickly And Save Money. One way to make sure that your loan closes on time is to have all your required documentation ready for your lender.

Banks' quarterly profits soar amid lower tax rate .
U.S. banks reported $56 billion in profits in the first quarter, up 27.5 percent from a year earlier, as institutions began to take advantage of a lower effective tax rate, the Federal Deposit Insurance Corporation (FDIC) reported Tuesday.Over 70 percent of U.S. banks reported growth in year-over-year earnings, as the industry enjoyed higher net operating revenue amid a significantly lower corporate tax rate, according to the regulator. Net interest income was up 8.5 percent to $131.3 billion.

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