8 Great Mortgage Rate Tips
Inflation, lower unemployment levels, and general improvements in our economy have led to a boom in new construction and developments across our Greater Tampa Bay Area. These factors combined with national economic growth over recent years have also led to an increasingly positive outlook on our housing market.
As the2018spring market heats up, buyers are buzzing with questions about rising interest rates. The Federal Reserve has gradually raised benchmark rates a few times over the past year, including the most recent hike in March. Whil ea small quarter-point increase here and there may not seem like much,it could make a big impact on long-term loans and mortgages, which is why many homebuyers are looking to lock in current interest rates before the next potential spike.
The official contract interest for a fixed-rate mortgage varies from person to person. It is critical to seek the advice of a mortgage loan officer for your unique home-buying process. We’re always happy to provide referrals to experts specializing in helping buyers with residential mortgages. Here are eight tried-and-true strategies we have seen customers use for successfully financing a home purchase:
- Seek the help of a mortgage loan officer. Much like your realtor, a mortgage expert is essential for optimizing a cost-effective buying process.
- Keep steady employment and maintain comprehensive financial records so that an appropriate home-buying budget can be determined.
- Build sufficient savings for a down payment, which is traditionally 20% of purchase price.
- Sustain an acceptable credit score. Higher FICA scores can secure the best possible interest rates, which can lead to a more affordable monthly mortgage payment.
- Monitor interest rates and seek expert advice about rates. You may be able to get an early approval to lock in the best possible rates
- Research a variety of loan program options, such as first-time buyer programs, FHA, or VA loan options.
- Weigh long-term costs of 15- or 30-year loans, shop around for options, and ask about customizable terms. There is a variety of options available to today’s buyers.
- Ask about solutions to offset higher borrowing costs. Talk openly with your mortgage expert about escrow, property taxes, insurance costs, lending options, and closing costs.
As full-service real estate professionals, we can align you with top-notch financial experts ready to help guide you through a financial plan. Call Dick and Karla Nielsen today at 813-294-5786 for helpful information and real estate advice for home buying, investing, and selling in Florida.
