Blog – Page 637 of 889 – Mike Pfefferman

24

May

Home Mortgage Tips

Thinking About a Second Mortgage on Your House? Here’s What You Need to Know

Thinking About a Second Mortgage on Your House? Here's What You Need to Know Whether it’s to consolidate debt or make funds available for a home renovation, many people consider a second mortgage in order to make it possible to pursue other options. However, like any important financial decision, it’s important to be informed about the financial implications before diving in. If you’re currently weighing your mortgage options and are considering a second mortgage, here are some things to do before the final decision.

Research The Lenders

Since a second mortgage means that you’ll be borrowing against the value of your home, it’s especially important to do your research the second time around and ensure you’re going with the right lender. Instead of going with your first choice or the familiar one, look at a number of different lenders and see if they have positive reviews. A second mortgage can be a big risk so you’ll want to ensure you’re working with a lender who will be working for you.

Prepare Yourself For Higher Costs

Since a second mortgage qualifies as the second loan on your home, it means that it will be the second loan to be paid off in the event that you default on the debt. As a result, the rates for a second mortgage are generally higher than those for your first loan because the lender will be taking on a more substantial risk. While higher rates may not be that alarming if you’ve garnered low rates for your first mortgage, it’s important to determine the financial benefits before deciding on this option.

Is A Second Mortgage Right For You?

Borrowing money may be a common signpost of our culture, but it’s important to consider if a second mortgage is the right financial choice for you. You can certainly improve the value of your home with renovations and perhaps pay off some of your debt, but a second mortgage will only be beneficial if it improves your financial outlook in the end. Before diving in, make sure that you create a budget and calculate the potential savings so you can determine if it’s a good move.

There are a number of financial risks associated with getting a second mortgage so it’s important to weigh your options before deciding that this mortgage product is the right choice for you. If you’re currently looking into available options on the market, contact your trusted mortgage professional for more information.

23

May

By support

Home Buyer Tips

Did You Know: Single Women Are Buying Homes Faster Than Single Men — Here’s Why

Did You Know: Single Women Are Buying Homes Faster Than Single Men -- Here's Why With low interest rates and uncertainty as to where the real estate market will be in the next six months, many people are opting into ownership and investing in a home. Interestingly, according to the National Association of Realtors, approximately 17 percent of homebuyers in the United States last year were women, which is a much higher percentage than the 7 percent of single men who invested in a home. While the statistics may be interesting enough on their own, here are some of the reasons why women may be opting in.

Single Parent Security

The numbers don’t lie, and it’s a fact that there are a much higher number of single mothers in the United States than fathers, which makes home ownership that much more of a benefit. With low interest rates, it’s common sense that many single mothers will be flocking towards the housing market to find stable housing for their family in a market that may fluctuate in the coming months.

Making A Lifestyle Choice

The days are long gone of women having to invest in a home when they get married, and for many women being single is a very popular lifestyle choice. This means that many single ladies are choosing to invest on their own terms and at their own time so that they can reap the benefits of home ownership. As Jessica Lautz of the National Association of Realtors says, “They really value home ownership, and they’re willing to give up a lot to have a home of their own.”

It’s In The Numbers

There are certainly more than a few reasons why single women are flocking to the real estate market, but demographics are changing rapidly. While it was once the case that most people were married or would marry, more single women are opting out of marriage and opening up a wider market for single-person home purchases. Given the low interest rates and the increasing number of women choosing to be single, purchasing a home offers a solid bet and a financial boon.

With a home offering up the benefit of security and the advantage of being a good financial choice, it’s no surprise that more and more women are turning to home ownership on their own. If you’re contemplating purchasing a home of your own, contact your trusted mortgage professional for more information about opportunities in your area.

22

May

By support

Mortgage Rates

What’s Ahead For Mortgage Rates This Week – May 22, 2017

Last week’s economic reports included readings from the National Association of Home Builders, Commerce Department readings on housing starts and building permits and weekly reports on mortgage rates and new jobless claims.

NAHB Housing Market Index Rises, Exceeds Expectations

Builder Sentiment rose two points in May, which exceeded expectations of no change to April’s reading of 68. Builders and analysts said that short inventories of available homes continue to drive demand for new homes. While index readings jumped immediately after the Presidential election in November, builder enthusiasm settled when tariffs on lumber were increased.

Two of three components used in calculating the NAHB Housing Market Index reading. Builder confidence in current housing market conditions gained two points to a reading of 76; Confidence in market conditions over the next six months gained four points to 79. The reading for buyer traffic in new home developments fell one point to 51. Any reading over 50 is considered positive in NAHB HMI reports.

Housing Starts, Building Permits Lower in April

Despite rising home builder confidence in current and future housing markets, housing starts and building permits issued were lower in April than for March. According to the Commerce Department, 1.172 million homes were started in April as compared to 1.203 million housing starts reported in March; April’s housing starts were 0.070 percent higher year over year. Analysts had expected a reading of 1,259 million starts, which are calculated on a seasonally-adjusted annual basis.

Builders started single-family homes at a seasonally- adjusted annual pace of 835,000 homes in April, which indicated that builders may be gaining confidence in building homes for sale as compared to rental units. Building permits were issued at a pace of 1,229 million on a seasonally-adjusted annual basis; this was lower than the March reading of 1.260 million permits issued.

The apparent lag between strong builder sentiment and housing starts and permits could be due to ongoing concerns over increasing materials prices and shortages of buildable lots and labor needed to ramp up home construction.

Mortgage Rates, Weekly Jobless Claims Fall

Mortgage rates fell last week. Freddie Mac reported that the average rate for a 30-year fixed rate mortgage averaged three basis points lower at 4.02 percent. Rates for a 15-year fixed rate mortgage averaged 3.27 percent, a drop of two basis points over the prior week. Mortgage rates for a 5/1 adjustable rate mortgage averaged 3.13 percent, which was one basis point lower than the prior week. Discount points were unchanged at an average of 0.50 percent for all three mortgage types reported.

New jobless claims were lower than expected last week, with 232,000 new claims filed as compared to 240,000 new claims expected and 236,000 claims reported the prior week. Low readings for new unemployment claims suggest strong jobs markets, but can be volatile and subject to adjustment.

What‘s Ahead

This week’s scheduled economic reports include readings on new and existing home sales and consumer sentiment. Mortgage rates and new jobless claims will also be released.