Blog – Page 600 of 896 – Mike Pfefferman

28

Nov

Home Mortgage Tips

Graduating With Student Loan Debt and Worried About Your Mortgage Prospects? You’re Not Alone

Graduating With Student Loan Debt and Worried About Your Mortgage Prospects? You're Not Alone Did you recently graduate from college or university? If so, you may still be dealing with a financial hangover in the form of student loan debt. The vast majority of today’s students have to borrow to invest in their education, which can affect financial plans once school is finished. In today’s post, we will explore buying a home with a mortgage when still dealing with outstanding student loan debt.

Your Situation Is Common, But Unique To You

First, try to keep in mind that you are not alone. Many former students are moving on with life, working hard to build a career and a life while juggling past student loans. However, your situation is unique, and thus, you need to plan it that way. For example, are you single or married? Are you in a stable career or are you potentially shifting jobs? Do you have children or are you planning to in the near future? Your financial needs are unique and need to be prepared and budgeted accordingly.

Understand Your DTI Ratio

Have you heard of the debt-to-income or ‘DTI’ ratio? When you take out a mortgage to buy a home, this ratio is one factor in determining how much you can borrow. In essence, it is a ratio of your monthly debt payments versus your monthly income. As you are paying off student loan debt, that will increase your DTI ratio. Adding a mortgage, car or other monthly payments on here will as well. You will want to ensure that you maintain a healthy debt-to-income ratio or it can be challenging to stay solvent.

Balancing Your Mortgage With Your Other Loans

You may have heard this saying: “life happens.” It is rare that anyone can spend years with everything going according to plan. If you run into a temporary health or job-related issue, you may need to do some juggling to keep your mortgage and other payments fully managed. For this reason, it is worth trying to save at least a few months of your monthly expenses in a ‘rainy day’ fund. Just in case of an emergency.

Challenging, But Not Impossible

Balancing a monthly mortgage payment with student loan repayment can be challenging, but it’s not impossible. If you would like to learn more about mortgage products that are perfect for recent graduates, contact us today. Our professional team is happy to share how we have helped others with student loans realize their dream of homeownership.

27

Nov

By support

Mortgage Rates

What’s Ahead For Mortgage Rates This Week – November 27, 2017

Last week’s economic reports included readings on pre-owned home sales, weekly reports on mortgage rates and new jobless claims and consumer sentiment. The weekly news cycle was shorter due to the Thanksgiving holidays on Thursday and Friday.

Sales of Previously–Owned Homes Jump in October

Sales of previously owned homes grew by 1.20 percent in October as compared to September’s reading of 0.10 percent growth month-to-month and indicated a seasonally adjusted annual rate of 5.48 million sales. October home sales increased as inventories of available homes declined. There was a 3.90 months supply of homes in October as compared to a 4.40 months supply of available homes in September. Real estate pros typically consider a six-month supply of homes a healthy balance between homes available and potential home buyers.

Analysts said that October’s inventory of homes for sale was the second lowest on record from 1999 to present. The National Association of Realtors®, which produces the Existing Home Sales report, said that sales to date were 4.60 percent higher year-to-date.

All regions tracked by the National Association of Realtors® reported increased sales of previously owned homes. The Northeast posted a 4.20 percent gain; the Midwest posted a gain of 0.80 percent and the South posted a gain of 1.90 percent. The West posted the highest gain in pre-owned home sales with 2.40 percent growth rate.

Analysts expect sales of pre-owned homes to rise by 3.70 percent in 2018; proposed revisions to tax laws could sideline home buyers if homeownership is “dis-incentivized” by tax reforms.

Mortgage Rates Mixed, New Jobless Claims Lower

Freddie Mac reported mixed results for average mortgage rates. The rate for 30-year fixed rate mortgages fell three basis points to 3.92 percent. Average rates for 15-year fixed rate mortgages and 5/1 adjustable rate mortgages each rose by one basis point to 3.32 percent and 3.22 percent respectively. Discount points averaged 0.50 percent for 30-year fixed rate mortgages and 0.40 percent for 15-year fixed rate mortgages and 5/1 adjustable rate mortgages.

New jobless claims were lower last week with 239,000 new claims filed. Analysts expected 240.000 new claims as compared to the prior week’s reading of 252,000 new claims.

The University of Michigan’s Consumer Sentiment Index fell from an index reading of 100.7 in October to 98.5 in November. This was the second highest reading in thirteen years. Consumer sentiment remains high despite headwinds including potential tax reform.

What‘s Ahead

This week’s scheduled economic readings include reports on new and pending home sales, Case-Shiller Home Price Indices and inflation will be released. Weekly readings on mortgage rates and new jobless claims will also be released.

24

Nov

By support

Home Buyer Tips

Are You Ready for Home Ownership? Find Out by Answering These 4 Questions

Are You Ready for Home Ownership? Find Out by Answering These 4 Questions Have you been dreaming about a larger, roomier or more luxurious living space? Or perhaps just want to experience the joy of owning your own home and building your net worth instead of renting? Let’s explore a few questions that can help to answer whether or not you’re ready for a new lifestyle as a homeowner.

Can You Realistically Afford To Buy A Home?

The first consideration to make is a financial one: can you afford it? Buying in a home is a significant financial investment. In most cases you’ll need to manage monthly mortgage payments for many years. The good news: owning a home is a more affordable than you might think. If you’re already a stable renter then you’re most of the way there.

Do You Have Your Down Payment Saved Up?

If you’re confident that monthly payments are no problem, then the next step is saving up enough to cover your down payment. This is a lump-sum investment that you make when you buy the home. Typically your down payment is around 20 percent of the home’s cost, but there are assistance programs which can reduce this further.

Do You Know What Type Of Home You Need?

Once you’ve cleared all of the financial hurdles, you will next need to decide exactly what kind of home you need. If you’re a single young professional, a condo or apartment might be the perfect starter home from which you can upgrade later. Or you might prefer something more rural which comes with more yard space, perfect for pets.

Are You Ready To Set Down Some Roots?

Finally, it’s worth taking some time to decide whether or not you’re ready to emotionally and physically invest in your local community. Is your career stable enough that you won’t be moving for at least a few years? What about that of your partner or spouse? If you don’t already, do you envision having children in the future? All of these are considerations that will help you choose the right neighborhood.

When you are ready, our professional mortgage team is here to help you finance the home of your dreams.