Rent or Buy? You May Want to Decide Soon

Rent or Buy

If you are considering a home purchase and don’t have a ton of money for a down payment, now may be the best time to apply. Why now?

Changes to Mortgage Insurance

When buyers, especially first time home buyers, don’t have a lot for a down payment they often opt for an FHA loan. FHA loans are government backed loans that require borrowers to pay mortgage insurance. Mortgage insurance on FHA loans typically drops off once you have enough equity in your home and have a established a good payment history. So what’s the big change? On June 1, 2013 – mortgage insurance will no longer drop off. As of that date, mortgage insurance will be required for the life of the loan.

What does that mean to you? More money out of your pocket.

House Prices on the Rise

Home affordability continues to remain high – but home prices have begun their inevitable rise with high demand and scarce home inventory levels. Home prices rose 9.7 percent in January from a year ago, according to data released today by CoreLogic. This is the biggest annual gain since April 2006.

Why should you care? The obvious answer is that you will pay more for a home. Another reason to care is that once that home is yours – you will appreciate the increasing value of your property in the form of long term wealth accumulation.

Rent or Buy –  Which is Better?

Ultimately, the decision to rent or buy is based upon a number of factors. Maybe you’re ready to be a home owner, maybe your not. However, it never hurts to understand your options. Consult a licensed mortgage loan officer today to discuss your specific home financing needs. Consultations and mortgage loan pre-approvals are free.

Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

Rates Keep Dropping…but for How Long?

According to Freddie Mac, rates on 30-year fixed-rate mortgages averaged 4.15 percent with an average 0.7 point for the week ending Aug. 18, down from 4.32 percent last week and a 2011 high of 5.05 percent in February.

These are new historical lows for 30-year fixed rate loans not seen since the week of November 11,  2010 when 30-year fixed-rate mortgages hit 4.17 percent. Rates on 15-year fixed rate loans haven’t been this low since 1991.

All these rate drops and the Mortgage Banker’s Association says that the demand for mortgages are down 13.5% from a year ago. Refinancing applications accounted for nearly 8 of 10 loan requests and up 8% from last week.  Some lenders are having a hard time keeping up with the refinancing boom – but not Inlanta Mortgage. Consult a licensed mortgage loan professional to discuss if refinancing is an the right option for you.

Mortgage Rates Fall – Refinancing on the Rise, Homes More Affordable

Many homeowners are taking advantage of record low mortgage rates. According to the Mortgage Bankers Association, refinance application volume has increased by 63% over the past month – up 21.7% from last week. If you own a home, have a good job, and can qualify for a mortgage – refinancing has the potential to reduce the amount you pay in interest over the life of your loan, reduce you monthly mortgage payments, and whittle down your principal mortgage balance faster. Obviously not every homeowner is in the same boat – so our licensed professional mortgage loan officers are ready to help you determine if you are in a good position to refinance.

S & P’s downgrade of the U.S.’s credit rating, the subsequent drop in stock market values, and European debt concerns have contributed to record low mortgage rates. Freddie Mac’s weekly survey of conforming interest rates lists 30-year fixed-rate mortgage rates at 4.32% for the week ending August 11th (today).  According to the National Association of Realtors affordability index – homes have never been more affordable than any other time since the group began keeping track.

Refinance? New Purchase? For more information, contact an Inlanta Mortgage Loan Officer here or locate a branch near you here.

Mortgage Rates are Historically Low!

Fifteen-year fixed rate mortgages and five-year adjustable rate mortgages hit record lows this week due to speculation that the U.S. economy is weaker than previously thought.

According to Freddie Mac, mortgage rates are averaging 3.54 percent compared to 3.66 percent last week and 3.95 percent one year ago. Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.18 percent, down from 3.25 percent last week and 3.63 percent a year ago. Rates on 30-year fixed-rate mortgages also fell, averaging 4.39 percent, their lowest level for 2011.

Many people aren’t taking advantage of low rates because they fear they will not qualify as a result of stricter financing requirements. Other people feel that prices have yet to bottom out. If you are considering a mortgage, it may be best to consult a professional mortgage loan officer to see what the scoop really is. Every person’s situation is unique and there are many mortgage loan products. A professional can help you discover what options are best suited to your needs.

Consult a qualified mortgage loan officer for more details on mortgage loans and rates. Rates are subject to change at any time.  To speak with an Inlanta Mortgage Loan Officer contact us here.