Could Mortgage Rates Go Up Anytime Soon? Why Is It Necessary For Us To Get a 30-Year Fixed Mortgage Now? Find Out Today

A lot of the mortgage and home buying advice you see online is geared toward average buyers in average or lower-priced housing markets. You can safely take what these articles say about smaller mortgages ($200,000 or $300,000) and multiply by two or three times to understand the impact on higher loan balance mortgages and loans in areas such as Los Angeles and Orange counties.

Interest rates go up and down, and while it’s probably not necessary to keep an eye on them daily, especially if you’re not about to make an offer on a home, you should be aware of their impact on your home buying power and long-term finances.

How much could half a percentage point increase on a 30-year fixed-rate cost me?

If you got a 30-year fixed-rate mortgage for $700,000 at 3.9%, your monthly principal and interest would be approximately $3,300. If the interest rate increases by .2 points, your payment will be about $3,382 a month. That’s $82 a month — not great, but not terrible, right?

Think again. A 30-year fixed-rate mortgage breaks down into 360 payments. Multiply $82 by 360. Just two-tenths of a percentage point increase in mortgage interest will cost you $29,520 over the life of your 30-year fixed-rate mortgage.

What should I do if mortgage interest rates go up?

Now that you know the overall, long-term cost of even one-tenth or two-tenths of a percentage point could cost you over the life of your loan, you’re in a position to make better-informed choices about home-buying and mortgage rates.

First, if you’re already looking for a home, be prepared to lock in your mortgage rate so it doesn’t go up during escrow. Second, if you’re planning to start looking for a home during the next six months, set a news alert to keep track of mortgage and home price news. You’ll quickly find that different mortgage sources often predict different rates of increase or decrease in 30-year fixed mortgage rates. You won’t know your specific rate until you apply for mortgages, but the alerts can give you a general idea of how much your mortgage rate could be.

Ups and downs in mortgage rates are an important factor affecting your home buying power and long-term financial planning. It’s just another good reason to work with a mortgage loan professional you can rely on and trust.

Sources

https://www.realtor.com/news/trends/home-buyers-need-to-know-when-mortgage-rates-rise/

https://www.mortgagecalculator.org/calculators/mortgage-payment-calculator.php#top

https://www.forbes.com/sites/alyyale/2019/10/04/will-mortgage-rates-stay-low-through-2019-heres-what-experts-predict/#9f8737c279cb

California Platinum Loans

  https://californiaplatinumloans.com

Is It Possible To Qualify for a Good 30-Year Fixed Mortgage Rate In Our Current Market Condition? What Are The Important Factors Being Considered Today?

For most people, buying a home is the single largest purchase they’ll ever make. It’s worth it to get the best 30-year mortgage interest rate you can. Just one more percentage point of interest and you will pay thousands of dollars more for your home over the course of a 30-year mortgage. A 30-year mortgage includes 360 monthly payments. If you can save $200 per month by getting a lower interest rate, this equals $72,000. A quick visit to an investment calendar can show you how much money you’d have if you’d saved $200 a month for 30 years and invested it: at an average 6% rate of return, you’d have an investment fund of over $196,000.

So, what can you do to qualify for a good 30-year fixed mortgage rate?

Improve your FICO credit score

Keep your credit score as high as possible. Pay your bills on time and don’t keep more than 20% to 30% balances on your credit cards. Ideally, you should be able to pay your credit cards off every month. Check your credit report regularly. Make sure you have no derogatory reports like collection accounts or liens. Don’t make major credit purchases like a new car or appliances before you pre-qualify for a mortgage.

Save as much as possible for a down payment

Conventional mortgages often require a 20% down payment. We get it: it’s challenging to save a 20% down payment on a $750,000 home. You can have options for other loan programs like FHA and VA home loans that don’t require such a large down payment.

Have a strong record of earnings and employment

These days, more people are working independently or combine self-employment with traditional salaried jobs. Be sure you can document at least two years or more of steady earnings at the level you need to qualify for the mortgage you want.

Shop multiple lenders

You’ll get different answers from different lenders on interest rates and loan terms. That’s one reason working with an experienced independent mortgage broker who is a loan professional can help you get the best deal on your 30 year fixed mortgage.  That SINGLE INDEPENDENT MORTGAGE BROKER can SHOP dozens or hundreds of with a  LENDERS on your behalf with a SINGLE LOAN APPLICATION.  And with a SINGLE CREDIT PULL.  This is a huge benefit of working with an independent mortgage broker, they only have to run your credit ONCE and can instantly compare rates and shop your loan with dozens if not more lenders finding you the best rates and lowest costs.  Whereas, a consumer went to dozens of lenders to shop the rates, each lender would need a complete application and would have to run the consumers credit in order to accurately quote a rate.  Since rates are a factor of much more than just a FICO Score, and the LTV, Loan to Value of a property.  Pricing models take into account DTI debt to income, and debt to available credit ratios along with many other factors that can only be accurately priced with a complete application and a tri-merge mortgage credit report.

So that’s why an independent mortgage broker who has your complete loan application and has run your credit can accurately compare and shop rates on your behalf with multiple lenders simultaneously.  Without having each of them re-running your credit.  Since through the wholesale channel a broker can just re-issue the same credit report to as many lenders in their channel without any additional hard hit inquiries on the consumers credit.

Now once you have the best mortgage rate and know your loan terms, consider locking in your loan rate while you’re in the closing process. This is a service many lenders offer for free, as well as for a modest one-time cost for those wishing to buy down to an even lower rate.

Source

https://www.forbes.com/advisor/credit-score/how-to-raise-your-fico-score/

California Platinum Loans

  https://californiaplatinumloans.com

What is a PITI? Learn The New Secret of How The Loan Payment You Can Afford is Quickly Calculated Here And Now

If you’ve looked at even a few houses online, you’ve seen the mortgage payment calculators that are on every home sales website. Are these mortgage payment estimates accurate, and can they help to tell you whether you can afford to buy the house or not? It turns out there’s a lot more to buying a house and making monthly house payments than some of the simple mortgage calculators can indicate. One of the mortgage business insider terms you could hear is “PITI.” Understanding what PITI means can help you to understand what you really can afford, and how much your monthly house payment is likely to be — or what could be potential changes or exceptions.

What does “PITI” stand for in the home loan and mortgage business? PITI is an acronym that stands for “Principal, Interest, Taxes, and Insurance.”

So, how do these payments work?

First, the principal represents a portion of the amount you’re borrowing to pay for the house you want to buy. Interest represents the portion of your house payment that pays the interest the lender is charging on your loan.

For a 30-year fixed rate mortgage or a 15-year fixed rate home loan, the monthly payment stays the same over the course of the loan. But when the loan starts out, you pay primarily interest. Over time, you will pay higher amounts of principal, and lower amounts of interest. That is how people who have had mortgages for a long time pay down the mortgage, and build equity in their home.

Taxes and insurance will vary depending upon your home’s purchase price, and the mortgage insurance (MI) you will be asked to pay. This amount varies depending on the type of loan you have and its requirements. FHA loans, for example, will always include a mortgage insurance payment. If you are able to put 20% or more as a down payment, you may be able to find mortgage loan programs that don’t require mortgage insurance.

Property taxes will vary and they are calculated based on the purchase price of your home. You may also have Mello-Roos taxes in California, which are taxes related to bond initiatives in specific areas that are paid off over time. You lender will collect these funds and remit them on a schedule to the proper government authorities.

So, your monthly house payment will really be made up of four different payments: mortgage principal, mortgage interest, mortgage insurance, and property taxes. Those are the elements of “PITI.”

Sources

https://www.lendingtree.com/home/mortgage/piti/

Plus personal knowledge

California Platinum Loans

  https://californiaplatinumloans.com