Looking at this week’s reports on mortgage rates, why getting Pre-Approved is one of the first steps to take when buying a home and more!
Saturday means it’s football time AND it is time to check in on this weeks mortgage rate reports!
Freddie Mac reported:
30-year fixed-rate mortgages averaged 4.85% with an average 0.5 point
This is down from last week when it averaged 4.90%
Last year at this time, 30-year fixed-rate mortgages averaged 3.88%
15-year fixed-rate mortgages averaged 4.26% with an average 0.4 point
This is down from last week when it averaged 4.29%
Last year at this time, 15-year fixed-rate mortgages averaged 3.19%
A little bit of relief after Freddie had reported mortgage rates increasing for the last few weeks. Check out the chart showing rates for the last year:
The Mortgage Bankers Association reported:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to its highest level since February 2011, 5.10%, from 5.05%, with points increasing to 0.55 from 0.51 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) decreased to 4.98% from 4.99%, with points decreasing to 0.34 from 0.35 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since February 2011, 4.50%, from 4.44%, with points decreasing to 0.54 from 0.58 (including the origination fee) for 80 percent LTV loans.
Not as good news from the MBA but remember that both of these reports are the average mortgage rates and may not reflect what is realistic or possible for you. It simply shows you where mortgage rates have been and where they are headed.
One of the first steps to take when buying a home is sitting down with several mortgage lenders of your choice to explore your options and see what is possible. Home buyers will want to get Pre-Approved since it helps them to set their budget AND submitting a Pre-Approval Letter with your offer proves you are a serious legitimate buyer.
Freddie Mac had this to say about getting pre-approved:
It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.
Lots of people do not know how much down payment they need to buy a home. Or they are not sure about what FICO score is required to qualify for a mortgage today.
You have to wonder how many people have not bought a home because they have not talked to a mortgage lender. If you want to buy a home, the smart thing to do is to ensure you start the process out correctly by figuring out your financing at the beginning!
Buying a home is a very serious financial commitment and it intimidates lots of people. You may hear words or phrases that you are not familiar with so here are some of the most common home buying terms:
These are just a few of the things that you need to know. Part of the advantage of working with a Realtor is they will be able to help you understand all the stuff you need to know when buying a home!