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Every first time home buyer looks for good references that will educate them about this loan type. No one can explain mortgage better than experts. Aside from being well-versed in the business, they can also observe trend and give opinions about the current real estate and financial markets. Here is a list of experts' view on today's mortgage, real estate, and financial market. Also, additional tips that can be helpful for first time buyers are included.
Experts on Recent Interest Rates
A recent Bankrate poll reported its panelist's forecasted mortgage rate trend. Only 14 percent of the panelists believe that the mortgage rate will decline. The remaining of the panelists were divided as half believe that mortgage rates will increase while the other half say it will remain the same. The panelists cited numerous reasons that cause them to have such idea about mortgage rates. Reasons include the recent trend and other happenings in the financial industry that result to possible mortgage rate surge or retention.
Banks Offering Loans More Today
Reports claim that more banks are currently offering loans. Nowadays, people who can get a loan can get their application approved. These are the individuals who can pay for 20 percent downpayment with clean credit records. However, lenders have rehabilitated after the recession-triggered problem in the real estate market, resulting to possible flexible credit standards in 2015. Instead of merely focusing on providing loans to eligible individuals, experts recommend to provide reasonable loans to those who can pay them back in the same reasonable manner.
Mortgage's Effect on the General Housing Market
Allowing more people to get mortgage to buy a house can also have a significant impact to the market. As more people are granted loans, the real estate market will have high demands on properties. They need more houses to meet the demand.
Even if the real estate market won't increase construction percentage, other real estate market sectors will certainly be affected with the growing number of home loan borrowers. Among these sectors is the service sectors offering utility services, landscaping and repainting. People buying a house, especially those getting previously-owned properties, will hire their services to redesign or improve their new properties. Hence, more service providers will benefit from the growing number of property owners.
Aside from service providers, furniture makers will also benefit from the increased number of buyers. As they own their properties, they will need furniture to design the house. Some buyers are even too particular with the design that they look for the right sellers who can meet their design needs. They may even have their furniture custom made to suit their needed home design.
Credit Score as an Important Factor
Experts also give tips to get better conventional, FHA and VA mortgage rates. Among all the elements needed for receiving better rates, expert lenders highly suggest maintaining a good credit score or improve their ratings. They say that it's the most important factor to save money on good mortgage rates.
Just like other tips, lenders say to ensure timely bill payments and clearing balances. One delayed bill payment can have significant impact on credit scores, resulting to lower chances of getting better rates.
Shopping for Lenders Online
Experts also recommend checking out lenders online rather than sticking with local loan providers. Not all local lenders offer good rates. Buyers may have better chance of getting better deals by shopping for lenders online.
Apart from finding better rates, online search is also convenient as buyers don't have to walk around their locales to find for loan providers with better rates. They can sit at home then look for lenders where they can send in their application.
Preparing for the Future
What experts notice is many borrowers want to finish paying off their mortgages as soon as possible by allotting more of their money as payment. However, they tend to put a lot of money on their mortgage then leaving their retirement plans behind. A lot of property owners then find themselves ut of cash the moment they retire. Experts then recommend to not rush on paying their mortgages. Instead, they recommend balancing their finances by putting equal amounts for their retirement plans and mortgages. Some even recommend putting more money on their retirement plans rather than quickly finishing off their mortgage. Looking forward to the future will ensure they have better lifestyle in the long run.
Experts have their opinions on mortgage rates today. They have their own view points on mortgage, citing technicalities that may help people balance their finances in paying their loans while ensuring their other investments are up to date.
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