In the Interest rate world: After a very steady couple of months it appears that interest rates have started
their climb up. The past week or two have not been interest rate friendly. Frankly- the news has just been too good for rates to stay as low as they were. If you have read anything I have written about interest rates in the past 20 or so years you know that Good News is Bad News for interest rates. The economy is gaining strength, employment is better than it has been since 2008 and the Fed may be forced to raise interest rates sooner rather than later. Keep in mind that the Fed does NOT have to raise the Fed Funds rate for long term rates to climb, long term rates will climb ahead of any Fed move. So what does that mean for your buyers? Very qualified buyers will probably end up in the low 4's right now, and the typical FHA buyer is fast approaching the 4's for a 0 point thirty year fixed rate.
Let’s put some numbers into perspective using a hypothetical $250,000 loan:
Earlier this year that loan would have cost $1,157/month (P&I) Today to get the same payment you could only borrow $235,000 or to borrow $250k it would cost $72 more every month and at the end of 10yrs you would have paid an additional $12,000 in interest. It is amazing what one half of one percent can do! Waiting will cost thousands… not to mention that prices are likely to climb as interest rates climb- and that will only compound the simple examples above.
Are you ready for August 1st? August will be the biggest change in Real-Estate closings we have seen in over 30yrs, so this is an important topic to stay ahead of. Visit www.HomeBridge.com/AugustFirst for webinars explaining the changes, there are two available now to listen to and there will be a handful more being posted in the future.
Have a great week
Rob
Robert Rauf
Mortgage Loan Originator NMLS ID# 248937
http://www.homebridge.com/RobertRauf
or my blog: http://activerain.com/blogs/rrauf
Office:
RRauf@HomeBridge.com
www.RobertRauf.com
Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 16 Madison Avenue, Building 2 Suite 2D Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.Homebridge.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood Bayville , Manchester 08757 08733, Manahawkin 08050, Robert Rauf is a Licensed Mortgage Loan Originator in New Jersey.
Comments(2)