Mortgage Rates Increasing-Get Off The Fence!

Mortgage Rates Increasing-Get Off The Fence!

Mortgage Rates Increasing Can Effect What You Can Afford

When you’re buying a home in Oakland County, Michigan, you might think the price you offer is ultimately the price you’ll pay, but if you’re buying a home with a mortgage, that’s not the case. With a mortgage, in addition to paying your principal (the amount of money the bank loans you to purchase your home), you’ll also pay the interest rate on that principal—which is why the mortgage rates increasing on a mortgage loan is so important to you as a home buyer or potential home buyers.

Interest rates on mortgages have been low in recent years, but we have seen them steadily climbing in recent months effecting not only home buyers, but home sellers as well. And even a increase in an interest rate can cost you big over the course of your mortgage. According to a recent article from Realtor.com, thanks to forecasted hikes to the Federal Reserve Key Interest Rate (which directly impacts interest rates on mortgages), mortgage rates increasing upward are expected to continue increasing for the foreseeable future.

As the article demonstrates, even a small increase in your mortgage interest rate can spell major changes in your monthly payment. For example, if interest rates for a 30-year, fixed-rate mortgage increase by one percentage point from the current rate of 4.65%, you’ll pay a whopping $53,000 more over the course of your loan than you would pay if you purchased today.

The Takeaway

If you’ve been thinking about purchasing a home, do yourself a favor and make a move now before interest rates go any higher—and save yourself a ton of cash in the process. Let me know your situation and lets find you a home before you spend more than you wish. Give me a call-248-790-5594. Tom Gilliam

Credit Behaviors – Advice For Potential Farmington Hills Home Buyers

Credit Behaviors – Advice For Potential Farmington Hills Home Buyers

Credit behaviors and credit ratings are generated by three major credit agencies (Experian, Equifax, and Transunion). They all use a differing formulas to generate a numerical rating that reflects your credit risk. The higher the number, the better the credit rating. Certain things may have a adverse effect on your score and could possibly result in you getting turned down for a mortgage. Below are advice for potential Farmington Hills home buyers on credit behaviors that impact the ability to get a loan.
Credit Behaviors - Advice For Potential Farmington Hills Home Buyers

Credit Behaviors That Impact The Ability To Get A Loan

Tardy Payments

Missing payments demonstrate poor credit behavior and therefore will reduce your rating. The number of months you are late (30, 60, or 90+ days) and how many times you are late also play a role. Late payments stay on your credit profile for an extended length of time.

Collections

If you are really behind on payments and a credit provider has given up on their own procedures to retrieve money from you, they may move your debt to a collection company. The collection company notifies the credit agencies. The history will show in your credit file even if you pay off the debt.

Discharges

If a lender is unsuccessful in obtaining the complete balance that you owe to them, they may “charge-off” the the leftover balance. This could occur if you entirely fail to send payments or if you settle for a payoff below the remaining owed. Settlements reflect on your credit file for seven years. Future lenders will see this item and assess whether you will continue with that behavior.

Publicly Recorded Offenses

Bankruptcy, tax liens, judgments, foreclosures, and other legal matters are recorded into public record. Regardless of whether you settle those items, the actual recording is reflected in your credit report. Certain things remain for seven to ten years whereas others (i.e. liens) will never be cleared. Obviously, it is critical to avoid letting accounts get this far.

Advice For Potential Farmington Hills Home Buyers

All of the credit behaviors that impact the ability to get a loan noted above make you a risky client and may cause higher interest rates or completely prevent you from getting approved for loans. Practice conscientious payment patterns and it will save you time, money, and disappointment when it is time to buy a home. These are the best advice for potential Farmington Hills home buyers. Remember that this details only a few typical credit mistakes. Speak with a financial professional for guidance on your specific situation.

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