New Mortgages Will Be More Expensive Soon. Guaranteed.
Home buyers beware, Federal Interest rates are going up, guaranteed.
If you are sitting in the wings waiting for housing prices to drop, don't, it's not going to happen for some time. What will happen in the short term is mortgage rates will go up. With the current rate of a conventional loan being in the 4% range, this could easily hit 5% in 2018. Big deal, 1 percent you say? Well on an $800,000 mortgage (average for Pasadena) the difference in monthly payment is $475.25 per month (just principle and interest). Over the life of a thirty year mortgage, that is a whopping $126,321.58.
When these rate increases will happen is not yet determined. Most likely, it will be small increments as it has in years past. Some officials on the Federal Open Market Committee state it will happen in four increments, some say three and some say two increments. Regardless, they will go up.
If you have been thinking about homeownership, now is the time. This first step in home ownership is Pre-Approval (not Pre-Qualification which holds little merit).
Pre-Approval is a more lengthy process where past tax statements are shared and reviewed by a professional mortgage broker. This can be done at the local branch of the bank you bank with (Chase, Wells, Credit Union etc) or with an independent lender.
While I always advise the clients I work with to shop around for the mortgage, I tell those closest to me that an independent lender will work harder and have better pricing. They lack the overhead of branch offices, thousands of employees and millions in advertising budgets. Those savings transfer to you.
If you need a good lender, I can recommend one. I have a short and vetted list of mortgage brokers that I trust completely (I would send my mother to these lenders).
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Michael Robleto
REALTOR®-Podley Properties
Michael Robleto is a REALTOR® with Pasadena based Podley Properties. His analytical and open approach to sales has served his clients well in his twenty years of sales. Michael brings a modern data and technology-driven approach to real estate while focusing on the historic architecture of Bungalow Heaven. Tapping his experience in media and journalism, he publishes in-depth blog articles that will be of interest to homeowners and home-buyers. He can be found on Facebook, YouTube, Twitter and Instagram under the common profile name of his blog BungalowAgent or at www.BunaglowAgent.com/blog. For Sellers or Buyers Agent representation he can be contacted directly.
The Smart Money Strategies for buying in Downtown LA.