I received this information from a Lender my clients have used. She is with Prosperity Mortgage. Give her a call.
Tammy Rivard
Relocation Sales Manager
NMLS # 561867
Office: 952-967-2599
Tammy.Rivard@PHMLoans.com
Whether you're a first-time or move-up home buyer, you may be considering postponing a purchase if your area's affected by climbing home prices. Or you may be balking at today's mortgage interest rates. More on that in the next post!
However, no matter where prices and rates may be, you have some different strategies to consider.
Buy now, refinance later. While it's impossible to predict when interest rates will change, almost all lenders expect rates to eventually go down. If you're buying in an area where home prices are still rising, this approach could be worth considering, especially if you're renting and not building equity.
Make a larger down payment. If you have the funds to do this, it could help you in several ways. In addition to a possibly lower interest rate on a mortgage, it will provide lower monthly payments. Also, you may be able to forgo mortgage insurance or cancel it sooner than later.
Consider a shorter loan term. While this translates into higher monthly payments, it also earns you a lower rate. For example, while the current average rate for 30-year loans was 6.71% earlier this week (according to Freddie Mac), 15-year loans came in at an average rate of 6.06%. You'll also save quite a bit in long-term interest.1
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