Mortgage Rates

[mcstealth]

Hey everybody. A quick post about INTEREST RATES and mortgages. Most likely, rates will continue to rise untill mid 2006 which they then will remain stagnent for a while. For right now (12/17/2005) a good home interest rate is between 6.25% and 6.75%. I give this broad a spread because there is/are an incredible array of loan products available and the rates for each adjust appopiately. If you are thinking about buying a home, do it when it feels right. Don't wait for a low interest rate. If you get a good low rate when you buy your home, great, if the rates go lower two years after you buy your home, consider refinancing.

Call with any questions.

David
281-812-2534

[mcstealth]

Hey everybody. A quick post about INTEREST RATES and mortgages. Most likely, rates will continue to rise untill mid 2006 which they then will remain stagnent for a while. For right now (12/17/2005) a good home interest rate is between 6.25% and 6.75%. I give this broad a spread because there is/are an incredible array of loan products available and the rates for each adjust appopiately. If you are thinking about buying a home, do it when it feels right. Don't wait for a low interest rate. If you get a good low rate when you buy your home, great, if the rates go lower two years after you buy your home, consider refinancing.

Call with any questions.

David
281-812-2534

[Justin Molet]

thanks for the heads up. looks like i'll be taking the plunge at the worst time possible (figures).

[Justin Molet]

thanks for the heads up. looks like i'll be taking the plunge at the worst time possible (figures).

[Joseph Browning]

Not necessarily. Market studies have shown there is a 1-1 inversed correlation between APR and housing prices. When mortgages APRs are "high" prices come down.

Principle Loan Balance: $250,000
Annual Interest Rate: 6.25%
Amortization Length: 30 years

Monthly Payment: 1,539.29
Total Interest: 304,145.48
Average Interest each Month: 844.85
Yearly Payment Schedule

Principle Loan Balance: $250,000
Annual Interest Rate: 5.25%
Amortization Length: 30 years


Monthly Payment: 1,380.51
Total Interest: 246,983.33
Average Interest each Month: 686.06

Basically if you keep the house for more than 5 years, you only have to get a $10,000 better deal even at a 1% higher APR. Mortgage rates basically don't matter, unless you pay more than market rate. And I just betcha that Mr. Ferris would be more than happy to accomodate you in any way possible. If you take advantage of sellers perception that there are less buyers in the marketplace because of the higher interets rate you can probably get a far better deal. And never forget that buying a house to live in is a LIABILITY not an asset. That's rule #1! Good luck!

[Joseph Browning]

Not necessarily. Market studies have shown there is a 1-1 inversed correlation between APR and housing prices. When mortgages APRs are "high" prices come down.

Principle Loan Balance: $250,000
Annual Interest Rate: 6.25%
Amortization Length: 30 years

Monthly Payment: 1,539.29
Total Interest: 304,145.48
Average Interest each Month: 844.85
Yearly Payment Schedule

Principle Loan Balance: $250,000
Annual Interest Rate: 5.25%
Amortization Length: 30 years


Monthly Payment: 1,380.51
Total Interest: 246,983.33
Average Interest each Month: 686.06

Basically if you keep the house for more than 5 years, you only have to get a $10,000 better deal even at a 1% higher APR. Mortgage rates basically don't matter, unless you pay more than market rate. And I just betcha that Mr. Ferris would be more than happy to accomodate you in any way possible. If you take advantage of sellers perception that there are less buyers in the marketplace because of the higher interets rate you can probably get a far better deal. And never forget that buying a house to live in is a LIABILITY not an asset. That's rule #1! Good luck!

[Igal]

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Originally posted by Joe Browning:
And never forget that buying a house to live in is a LIABILITY not an asset. That's rule #1! Good luck! </div></div>thats from Rich Dad Poor Dad - a good read

[Igal]

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Originally posted by Joe Browning:
And never forget that buying a house to live in is a LIABILITY not an asset. That's rule #1! Good luck! </div></div>thats from Rich Dad Poor Dad - a good read

[mcstealth]

A home buying tip for first time home buyers.

As I said before, there are a dizzing array of mortgage products for profesionals to use. Not all of them need proof of rent payments to meet guidlines but most do. If you pay your rent to a friend in cash, live at home and pay for groceries, pay cash with no reciepts to a landlord....STOP!!! NOW!!! At a minimum, use a money order and save every reciept. Same way with utilities, use a money order. Live at home and don't pay rent? Give your parents a money order every month and save the reciept. I don't care if they cash the damn thing and give you the money back. Manufacture a paper trail! This is a key piece of the puzzle. Once a month on time every time. Cell phone bill, car insurance payments, day care, light bill, water bill, gas bill, use a money order. However, a personal checking account is preferable. Get the kind of statements that image your hand written checks as a part of the statement. Keep your statments, and now the mortgage guy has a paper trail to use to your home buying benefit. Paper trail of 'one time, every time' payments. Good luck.

David
'The Mortgage Guy'
281-748-4483

[mcstealth]

A home buying tip for first time home buyers.

As I said before, there are a dizzing array of mortgage products for profesionals to use. Not all of them need proof of rent payments to meet guidlines but most do. If you pay your rent to a friend in cash, live at home and pay for groceries, pay cash with no reciepts to a landlord....STOP!!! NOW!!! At a minimum, use a money order and save every reciept. Same way with utilities, use a money order. Live at home and don't pay rent? Give your parents a money order every month and save the reciept. I don't care if they cash the damn thing and give you the money back. Manufacture a paper trail! This is a key piece of the puzzle. Once a month on time every time. Cell phone bill, car insurance payments, day care, light bill, water bill, gas bill, use a money order. However, a personal checking account is preferable. Get the kind of statements that image your hand written checks as a part of the statement. Keep your statments, and now the mortgage guy has a paper trail to use to your home buying benefit. Paper trail of 'one time, every time' payments. Good luck.

David
'The Mortgage Guy'
281-748-4483