Mortgage Rates Remain Extremely Low

As of this August, all major mortgage rates have remained extremely low, thanks to recent economic indicators. The major trends in stock market indexes, oil prices, gold prices and Treasury’s indicate that rates will remain low for at least the near future.

General Rates

The 30 year fixed rate offered by conventional lenders is still at all time lows.  Recent economic news has indicated that rates will not be increasing in the short term.  This is great news for potential homebuyers and homeowners that wish to refinance their loans!

What is keeping Rates so Low?

Four major economic indicators are battling one another to keep the mortgage rates at historical lows.

First and foremost, the average price of oil per barrel has recently increased from $56 to $57 based on the watchful eyes of OilPrice.com. This slight increase reflects overall higher cost for energy, which tends to move prices up in general. Anytime that prices move up, mortgage rates could slightly increase with them.

On the flip side, the price of gold jumped up to $1,429 per ounce from the previous $1,420. Anytime there is a serious upward change in the price of gold, this shows that major investors have developed doubt in the overall economy. Doubt about the economy tends to push mortgage rates down. The latest prices in gold per ounce can be found at https://goldprice.org/

The 10-year Treasury yield, which is the single most indicative indicator of mortgage rates, has moved very slightly from 2.05% to 2.06%. When this yield starts to increase, it usually means that mortgage rates will also soon rise with it.

Global Trade Continues to Have Negative Outlooks

Along with the previous economic indicators, the overall global trade market has continued to keep pressure on lower mortgage rates. While the US and China work out their spat and come to an agreement about tariffs and other issues, many markets are holding their breath to see how the trade talks will affect prices of goods coming from China. This keeps mortgage rates low as some experts fear major price increases for imported goods may soon appear.

There are also talks that trade with Europe may be troublesome in the near future. Tariffs on goods produced in Europe have been threatened in a counter measure to a new rule from France that is imposing taxes on American based organizations within France. More tariffs mean higher prices which is applying pressure to keep mortgage rates at current levels.

Recommendations for Mortgage Rate Locks

Major markets shift up and down throughout the months and years. While it is impossible to predict exact details, broad generalizations can be made which allow people to make educated decisions on mortgage rates.

If you are buying or refinancing a home, and the expected close date is within the next 30 calendar days, then you should definitely talk to your mortgage lender and lock the rate now.  Rates are extremely low and while most of the market indicators show that rates should remain at this level for the next few weeks, you don’t want to gamble on some unforeseen event pushing rates up unexpectedly. Contact your local Inlanta Mortgage loan advisor today about rate locking, refinancing, or purchasing your home!

Summer Home Maintenance Checklist

Your Handy Summer Home Maintenance Checklist

Believe it or not, we’re already half way through the dog days of summer.

With fall right around the corner, you’ve likely checked off most things on your summer bucket list by now but how about your summer home maintenance checklist?

If you’ve been busy having too much summer fun for summer cleaning and organizing – never fear. Inlanta is here to provide you with your go-to summer home maintenance checklist.

Follow the list below to get your home clean and in order!

  • Inspect your air conditioner
  • Check and replace batteries in your smoke and carbon monoxide detectors
  • Deep clean your grill
  • Spruce up your outdoor space
  • Add a layer of mulch to boost curb appeal, keep weeds at bay, and retain water for your plants
  • Pressure wash the outside of your home
  • Update/refresh your home décor
  • Wash your windows
  • Clean out the garage
  • Declutter your space and donate unwanted items
  • Harvest and prepare your garden for fall
  • Clean and store your summer gear

We hope you enjoy these last few weeks of summer!

Now is the Right Time to Refinance | Inlanta Mortgage

When is the Right Time to Refinance? Hint: Now!

Interest rates have reached a point that many people never believed would happen. With 30-year fixed rates dipping below 4%, millions of homeowners are in a position to refinance and save significant money. Here are some of the top reasons why you should consider refinancing any existing mortgage.

Better Rate Means Lower Payments

The most obvious reason that attracts most people to refinance is the appeal of a lower interest rate, resulting in a lower payment. For a mortgage of $250,000 a change in 0.75% in rate can lower the monthly payments by $110. A wider gap in rates, such as 1.25% or even 2% can mean a savings of over $200 per month. For most homeowners this is reason enough to consider the costs of refinancing.

Better Term with Similar Payment

There is a lot of math involved in this example, but the bottom line is that a homeowner can save thousands of dollars in the long run.

Suppose you or someone you know took out a home loan approximately 3 years ago at a rate of 5.25% with a beginning balance of $250,000. The balance would likely be around $239,000 as of this writing. By refinancing that $239,000 at 3.95% on a 20-year loan, you could save over $100,000 in interest payments over the next 20 years. The home payment would increase by approximately $50 a month, but it could be a great financial move in the long term.

Improve Your Annual Tax Deduction

In recent years, Congress has changed the rules concerning using mortgage interest for a tax deduction. The interest paid on a 2nd mortgage is no longer deductible if that mortgage was not used to purchase the home. This means that people with a HELOC or a fixed rate 2nd mortgage that was used to consolidate debts or any other reason no longer get the tax deduction for that 2nd mortgage. By combining the existing 2nd mortgage with the 1st and refinancing everything to one loan, you will regain that tax deduction.

Move to a Different type of Mortgage

Some people may have purchased their home using FHA. Others may have used a less than ideal type of mortgage with a high interest rate. If you have made your mortgage and other debt payments on time for the past 12 months, your credit may now be strong enough to refinance to a conventional loan. A conventional loan will have better interest rate and, even if you pay private mortgage insurance, the mortgage insurance will eventually drop off once the balance is low enough. With FHA loans, the new rules state that the private mortgage insurance must remain in place for the life of the loan.

Regardless of your situation, if you have purchased a home within the past 3 to 5 years, now is a great time consider refinancing and taking advantage of these historically low rates. Contact your local Inlanta Mortgage loan expert today to get started.

All About VA Loans

As we celebrate our nation during July, we’re reminded that we live in The Land of the Free because of The Brave Who Served and Sacrificed for us.

To our veterans and active military personnel, we tip our hats to you, and to your sacrifices that make our freedom possible. We are committed to making your dream of homeownership possible with our VA mortgage loan options.

What is a VA loan?

A VA (Veterans Affairs) mortgage loan is designed specifically for service members, veterans, and eligible surviving spouses, offering excellent benefits that allow eligible VA borrowers to purchase a home with:

  • No money down
  • No PMI* (primary mortgage insurance) required
  • More flexible credit guidelines

What Can You Do with a VA Loan?

A VA loan is similar to any other conventional loan, allowing you to:

  • Purchase a home or condo
  • Build a new home
  • Refinance your current home
  • Make improvements on your current home, such as adding energy efficient features

Who is Eligible^?

In order to be eligible for a VA mortgage loan, veterans and surviving spouses must meet requirements based on available entitlement and years of service. To learn more about our VA mortgage loans, contact your local Inlanta loan officer today.

Finally, to all of those who proudly serve or have served in our US military, we thank you for your service!

*PMI is typically required when purchasing a home with a down payment under 20%, and the payment is added to your monthly mortgage payment.

Buying a Home Despite Student Debt

Whether you’ve just graduated or have been making those pesky monthly payments for a while, student loan debt can be heavy, burdensome and downright defeating.

The weight of Student loan debt doesn’t have to affect other areas of life – such as buying a home. If you’ve been dreaming about homeownership, but aren’t sure exactly how you can obtain such dream while having student loan debt, we’ve got some tips for you:

1. Talk to your Local Mortgage Pro for Advice

First and foremost, talk to a local mortgage pro as early as possible, whether you’re looking to buy a house this year or a few years down the road, to learn more about where your finances need to be to buy a home. Your mortgage pro will be able to tell about the different loan programs available, and what down payment assistance and other first-time homebuying programs may be available to help you achieve the dream of homeownership sooner, and more easily.

2. Don’t Neglect your Payments

There’s one simple rule you must follow: make your student loan payments on time, every time. Missing a payment or even making a payment late could hinder your credit score, which is a key factor in evaluating your home-buying readiness. As difficult as it can be to make those payments, it is important to understand the negative impact it can have on your financial future. Setting up monthly auto payments is a great way prevent any potential issues.

3. Focus on Building Good Credit

Having a good credit score is essential when applying for a mortgage. It provides your lender with a form of proof that you are a responsible borrower and good candidate to repay the loan. Work to build that good credit by staying below your credit card limits, making payments on time and swiping responsibly. Check out a few more tips on building and maintaining healthy credit.

4. Evaluate your DTI

DTI (Debt to Income) ratio is another important factor in determining your readiness to buy a home. Your lender will review your finances to determine your DTI by evaluating see how much debt you have vs. how much pretax income you are bringing in. Talk to your lender about your DTI to determine where you need to be to buy a home. Check out our step-by-step guide to reduce debt to get started.

Bottom Line:

If you’ve got student loan debt, you’re not alone. According to the Student Loan Hero website, about 45 million Americans currently owe more than $1.56 trillion in student loan debt. While it’s a burden to many, it doesn’t have to prevent you from achieving your dream of homeownership. Start working early with an Inlanta mortgage advisor you help determine your financial path to make it happen.

To learn more about the mortgage process or to find a mortgage advisor in your area, contact us today. Discover how we’ve already worked with borrowers like you to evaluate their unique financial situations and how we helped make their dreams of homeownership come true.