Veterans life insurance

Mortgage and real estate news this week

Pandemic-induced low mortgage rates will soon be a thing of the past, as experts say rates are on track to hit 5% in the near future. In keeping with these trends, you’ll want to check out the latest strategies from experts on how to get a good rate, among other topics like choosing the best type of refinance.

1. Mortgage rates should soon exceed 5%

Mortgage rates have fallen during the pandemic, but times are changing. Following the Fed’s decision to raise rates last week, experts are now predicting rates will hit 5% as early as next month. Contributing factors include inflation, the war in Ukraine and the resolution of the pandemic recession.

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2. Steps to getting the best mortgage rate

Getting the best mortgage rate possible is important because a fraction of a percentage point difference could mean thousands in savings or additional expenses over the life of the loan. You’ll want to show lenders that you can make payments reliably, so work on improving your credit score and establishing a stable employment history. It also saves for a large down payment and consider a 15-year mortgage. No matter how competitive your profile, you will always want to make comparisons between lenders.

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3. Choose the right type of refinance for you

Refinancing can support a number of financial goals, such as eliminating private mortgage insurance and reducing monthly payments. When refinancing, you’ll choose between options such as a rate and term refinance, where you change the rate and term of your loan, and a pull-out refinance, where you tap into the equity in your home. During your decision-making process, you’ll need to assess how much you’ll pay in closing costs, how much your new monthly payment will be, and how long you plan to stay in the home, among other factors.

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4. Find a VA lender

A VA loan is an affordable route to home ownership, allowing veterans to purchase homes without the burden of down payment and private mortgage insurance requirements. To get started, confirm that you qualify for the program and do your homework on lenders in your area. Lenders will offer a variety of different rates, so shopping around could save you thousands of dollars in the long run.

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5. Buy or build a house

If you build a house rather than buy, you will have the option of living in a brand new home tailored to your needs, but it will come at the cost of your time and labor.

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