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Mortgage Trends

Whether you’re a first-time or move-up home buyer, don’t postpone a purchase if your area’s affected by climbing home prices. 

Over the past few years, house buyers in much of the country have increased. For seven months, home prices declined, and although recently, the prices are back on the rise, a report from Knock  predicts favorable prices for buyers in over 30 metro areas, including Atlanta, Charlotte, Dallas, Colorado Springs, and Phoenix.

However, no matter where prices and rates may be, there are different strategies to consider.

Buy now, refinance later

There’s a saying in the mortgage world, “Homeowners marry their house. They only date the interest rate.” While it’s impossible to predict when interest rates will change, most lenders eventually agree with the expectation of dropped rates. If you’re buying in an area where home prices are still rising, this approach could be worth considering, especially if you’re renting and not building equity. If you want to refinance or purchase, we are here to help.

Check for Down Payment Assistance

Many programs are available to folks to assist in a house down payment. Check if you qualify for grants, second mortgage programs, and first-time homeownership programs. Contacting a loan officer should be your first step.

Make a larger down payment 

If you have the funds to do this, it could help you in several ways. Review all options, including our personal savings, employer assistance programs, gift funds, and retirement plans. In addition to a lower mortgage interest rate, it will also provide lower monthly payments. Also, you may be able to forgo mortgage insurance or cancel it sooner than later.

Consider a shorter loan term

If you want to spend less on loan interest, consider shorter-term loans. While this translates into higher monthly payments, it also earns you a lower rate. For example, while the current average rate for 30-year loans was 7.39% earlier this week (according to Freddie Mac), 15-year loans came in at an average rate of 5.80%. You’ll also save quite a bit in long-term interest.

Having a trusted mortgage provider ensures home buyers receive the best possible rates and programs. Contact us today to learn more about what we have to offer.

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