Junell Realty Group

Real Estate and Homes for sale in Carson City, Reno & Sparks, NV

(775) 432 6300
  • Home
  • Sellers
    • Selling Your Home
    • Getting Your Home Ready to Sell
    • Marketing Your Home
    • Your Homes Value
    • Seller Testimonials
    • Short Sale Help
    • For Sale By Owner
  • Buyers
  • Senior Living
    • Senior Living
    • Relocation Services
    • Living Options
    • Communities
    • Video Library
    • Downsizing Made Easy
    • Why Turn To Us?
    • Testimonials from Seniors
    • RESOURCES
      • Hospice (local)
      • Online Resources
      • Housing Glossary
  • What Clients Say
  • About Us
    • About Us
    • Our Mission, Vision, Values, Beliefs & Perspective
  • Careers
    • Executive Assistant
    • Showing Assistant
    • Buyer Specialist
  • Media
You are here: Home / Archives for Mortgage

Why Have Interest Rates Dropped?

Mortgage Word CloudThe headlines agree mortgage interest rates have dropped substantially below initial projections. Many who are considering purchasing a home, or moving up to their dream home, might think that they should wait to buy, because rates may continue to fall.

A recent article on the Economists’ Outlook blog by the National Association of REALTORS® (NAR) provides insight into one major factor in the decline in interest rates, the crude oil price.

“As of January 5, 2015, the U.S. Energy Information Administration (EIA) reported that the price of regular gasoline was $2.20/gallon, the lowest since gas prices peaked to about $ 4/gallon in May 2011.”

You may have noticed that filling your gas tank has become substantially less expensive in recent months. A welcome change from the close to $5 a gallon that many Americans were paying this time last year. The average US household is projected to save around $550 in 2015.

So what does that have to do with Interest Rates?

NAR explains the correlation like this:

“Lower oil prices mean lower inflation rate, which pushes down mortgage rates.”

Based on Freddie Mac’s weekly mortgage survey as of January 22, 2015, the 30-year fixed rate averaged 3.63% and the 15-year fixed rate averaged 2.93%.

“The decline in oil prices is generally positive to households by way of the gas savings and lower mortgage payments. That savings will boost consumer spending in other areas. But there may be some layoffs in oil-producing states.”

How long will rates stay low?

No one really knows how long oil prices will continue to support low mortgage rates. In a New York Times article, the author points to the fact that “adding hundreds of billions of dollars to consumer spending” could start to have a “counter effect” on rates as the economy continues to strengthen.

“If firms start hiring again, and wages increase — that’s when the level of all interest rates in the U.S. would increase.” 

Don’t wait too long

The low interest rates we are currently experiencing are not going to stay around forever. The current projections from Freddie Mac, Fannie Mae, NAR and the Mortgage Bankers Association all agree that interest rates will increase to between 4.3-5.4% by the end of 2015.

Bottom Line

NAR reports: “At the median home price of $205,300, a 0.75 percentage point drop in mortgage rates will yield savings of about $1,000 annually.”

If you are in a position to buy a home make sure that you meet with us so you know what’s going on our local market. Don’t let a delay in purchasing impact your family’s financial future.

Related Posts That Might Interest You:

  • Will an Increase in Interest Rates Crush Home Prices?
  • Mortgage Rate Projections – Buy Sooner Rather than Later
  • Where Are Mortgage Rates Headed?
  • With Interest Rates and Home Prices on the rise, do you know the true Cost of Waiting?
  • Interest rates hit a low with Fed’s bond buy

Filed Under: Mortgage, Team Junell Blog Tagged With: interest rates

Mortgage Rate Projections – Buy Sooner Rather than Later

In a recent video update on the housing market, Frank Nothaft, Freddie Mac’s chief economist, stated that with both mortgage interest rates and home prices projected to increase in 2015 buying now makes sense.

If you are planning to buy a home in the next year, it’s better to do it sooner rather than later.

Here are the latest mortgage interest rate projections from four major housing entities:Fannie Mae, Freddie Mac, the Mortgage Bankers Association (MBA) and the National Association of Realtors (NAR):

Mortgage-Rate-Projects-11-2014

Thinking of Selling & Moving Up?

This advice isn’t limited to just the first-time buyer. If you are considering moving up to the home your family has always wanted, waiting also makes no sense.

Related Posts That Might Interest You:

  • Should I sell my home first or wait until I have bought another home?
  • Why Have Interest Rates Dropped?
  • Thinking Of Selling? Now May Be The Time
  • Will an Increase in Interest Rates Crush Home Prices?
  • 4 Reasons to Sell Now

Filed Under: Mortgage, Team Junell Blog Tagged With: Buying, interest rates, selling

The Truth About Buying a Home: You DON’T Need 20% Down

ToddlerMotherIn a recent survey, How America Views Homeownership, it was revealed that 68% of Americans feel that now is a good time to buy a home and 95% said they want to own a home if they don’t already. Franklin Codel, head of Wells Fargo home mortgage production, explains:

“Although the home buying process has changed in many ways in recent years, our survey found Americans still view homeownership as an achievement to be proud of and many believe that now is a good time to buy a home.”

Confusion Creates Paralysis

However, the survey also reported that many are afraid to purchase a home because of uncertainty about “qualifying for a mortgage or navigating the home buying process”. Though 74% said they “know and understand” the financial process involved in buying a home, they also gave answers that suggest otherwise. For example:

  • 30% of respondents believe that only individuals with high incomes can obtain a mortgage
  • 64% of respondents believe they must have a “very good” credit score to buy a home
  • 44% believe that a 20% down payment is required

In actuality many of these beliefs are unfounded. Let’s look at the question of down payment: Freddie Mac, in a recent blog post addressing the issue, confirmed that there is misinformation regarding the amount necessary when determining the down payment for a home purchase:

“Did you know 40 percent of today’s homebuyers using mortgage financing are making down payments that are less than 10 percent? And how about this: since 2010, the number of people putting down less than 10 percent for conventional loans has grown three fold.  So, not only are low down payment options real, they represent a significant portion of today’s purchases.”

Christina Boyle, Freddie Mac’s VP and Head of Single-Family Sales & Relationship Management explained further:

  • A person “can get a conforming, conventional mortgage with a down payment of as little as 5 percent (sometimes with as little as 3 percent coming out of their own pockets)”.
  • Qualified borrowers can further reduce the down payment coming out of their own pockets to 3 percent by lining up gifts from family, grants or loans from non-profits or public agencies.

Education is the Key

Boyle talked about the importance of educating potential buyers:

“Letting more consumers know how down payments are determined could bring more qualified borrowers off the sidelines. Depending on their credit history and other factors, many borrowers can expect to make a down payment of about 5 or 10 percent.”

Codel agreed:

“It is important for prospective homebuyers to feel empowered to ask lenders and real estate agents questions about available options, such as down payment assistance or FHA loan programs or VA loans for veterans.”

Bottom Line

If you are saving for either your first home or that perfect move-up dream house, make sure you know all your options. You may be pleasantly surprised. For more information about qualifying for a mortgage or buying a home, contact us today at 775-432-6300.

Related Posts That Might Interest You:

  • Buying a Home Guide – Fall Edition 2014
  • Either Way, You’re Still Paying a Mortgage
  • No Money Down Home Purchases are Still Possible
  • Mortgage Rate Projections – Buy Sooner Rather than Later
  • Where Are Mortgage Rates Headed?

Filed Under: Buyers, First Time Home Buyer, Mortgage, Team Junell Blog Tagged With: Buying, buying a home, down payment, mortgage

Where Are Mortgage Rates Headed?

Upward Trend

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to look at where rates are headed when deciding to buy now or wait until next year.

According to a recent article in Kiplinger, 30 year mortgage rates are about to increase:

“Now around 4.1%, rates will edge slowly toward 4.4% by the end of this year. Then they’ll follow the Treasury bond rate’s upward move in early 2015. Thirty-year home loans should end 2015 at around 5.1%, still low by historical standards.”

Here is a graph created by using interest rate projections in Freddie Mac’s August 2014 U.S. Economic & Housing Market Outlook:

30 year fixed rates

How will this impact a mortgage payment?

Research released this month by Zillow reveals:

“We examined how a 1 percentage point rise in mortgage rates would impact monthly payments for the typical home in 35 metro areas, and found that the difference this year versus next year varies dramatically from market to market. In the Bay Area, for example, potential buyers should expect to see a monthly payment increase of more than $700 if they waited a year to buy the same home they were considering today. By contrast, in St. Louis, the difference is only $65 per month.”

Bottom Line

As interest rates rise, home buyers will confront higher monthly mortgage payments.  This in turn may cause a market slow down and consequently impact sellers.

 

Related Posts That Might Interest You:

  • With Interest Rates and Home Prices on the rise, do you know the true Cost of Waiting?
  • Interest rates hit a low with Fed’s bond buy
  • Friendly and Great to Work With
  • The Rental Trap – Don’t Get Caught!
  • Why Have Interest Rates Dropped?

Filed Under: Buyers, Mortgage, Team Junell Blog Tagged With: Buyer, home buyers, interest rates, mortgage

What to do when an appraisal comes in below the selling price

Q&A Icon - Questions and answers - 3d man - FAQAs the real estate market heats up and prices continue to recover, more home buyers and sellers are likely to encounter the problem of an appraisal that is lower than the agreed-upon sale price.

The reason for this is that appraisals must be based on recently settled transactions, and in a rising market those past transactions are likely to be lower in price.

When we price a home with a seller or determine an offer price with a buyer, not only do we look at what has sold, we also look at what is currently in contract, homes currently for sale (seller competition) and current market conditions such as rate of property absorption (buyer competition). Unfortunately, an appraisal doesn’t these factors into consideration.

Whether a buyer or seller, it’s important to understand the risks involved around low appraisals – and the options available.

As a result of the restrictions placed on the relationship between lenders and appraiser – aimed at curbing the appraisal abuse that contributed to the housing bubble – buyers and their mortgage representatives have less control over the process. Lenders simply order an appraisal from a list of approved appraisal companies, and a third party directs the individual to perform the appraisal.

Due to the third-party rules, the appraiser who is assigning a value to the home may not be from the immediate area. It can help to inform the appraiser of the quality of the school district or the amenities in the local neighborhood, as well as improvements to the property as compared with other recent sales in the area.

We also suggest preparing a package of information on the home, including data on comparable houses and any improvements that have been made that should influence the value of the home as this information isn’t always accessible or obvious to the appraiser.

At times we’ve also exercised our right to reject the appraiser on the grounds of lack of local market knowledge, and had a new appraiser assigned for the appraisal.

If an appraisal does come back at a lower value than it should, the appraisal can also be challenged, requiring a review.

 

Related Posts That Might Interest You:

  • The Truth About Buying a Home: You DON’T Need 20% Down
  • Where Are Mortgage Rates Headed?
  • With Interest Rates and Home Prices on the rise, do you know the true Cost of Waiting?
  • Either Way, You’re Still Paying a Mortgage
  • Should I lock in the mortgage rate?

Filed Under: FAQ, Mortgage, Team Junell Blog Tagged With: appraisals, mortgage

Interest Rates: A History

With interest rates at an all time historic low, it’s easy to get complacent and take them for granted. A look back can only help to remind you how good we have it now!  Just take a look at the image below:

 

Source: Freddie Mac Primary Mortgage Market Survey / CAR

Related Posts That Might Interest You:

  • No Related Posts

Filed Under: Buyers, Mortgage, Team Junell Blog

  • 1
  • 2
  • 3
  • 4
  • Next Page »

Take our Mobile Search App with You

RSS Feed RSS - Posts

Connect with Us

FacebookLinkedinYoutube

Copyright © 2017 · Junell Home Selling Team · All Rights Reserved

Keller Williams Group One, NV

Return to top of page