How Does Oil Impact Interest Rates?

How does the economy impact interest rates? Oil, stocks, bonds, Federal Reserve Chairman Yellen, flying monkeys...how do these factors play out in regards to interest rates? This is a hot topic right now, as reported by CNBC's Trading Nation this morning.

Well, you can watch a plethora of TV shows, read a ton of newspaper and blog articles. Or you can consider interest rate as merely one factor in your choice to buy a home.

I think that interest rate is an important factor while considering whether or not you will purchase a home. However, there are several other critical items to ponder. Obvious questions to ask yourself would be, "Can I afford the total monthly payment?" "What other bills may come up that I'm not anticipating?" "Will I need a new car in the near future, how much will that payment be?"

In addition to the economic piece of the equation, I think this is a very personal decision.  I know that sounds obvious, but just as important as how hot the real estate market is or is not or where interest rates will go, is an individual's plans for the future.

I believe there are at least two sets of questions that we should ask ourselves when considering the purchase of a home. The first set of questions has to do with a person or family's plans. Am I going to stay in this city, this state, this neighborhood for 1-2 years?  3-5 years?  How is my job stability? Do I love my job?  Can I work from anywhere? Am I single or engaged? Am I planning on growing my family?

The second set of questions has to do with the economics. What do I need/want in my housing? Can I rent a luxury apartment or do I need a 4 bedroom house? What's the cost of renting vs. buying? What's the cost per square foot of renting vs. buying? Does it cost more or less to rent than to buy? Any excellent licensed loan originator as well as real estate agent should be able to help you with this calculation in your local area. Basically you take your total estimated monthly mortgage payment including property taxes, home owners insurance and any monthly home owners association or condo fees and compare it to the cost to rent something similar in location and size. To make it more complex, factor in your down payment and estimated closing costs spread over the time you think you will be in that location as well as any interest deduction your CPA thinks you would benefit from by owning. Other factors to consider are leverage and appreciation.

Grab our new kindle version of my #1 Best Seller on Amazon. You can get it for FREE for a limited time if you have Amazon Prime or Kindle Unlimited or it's just $2.99 and that's a steal too!

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

For sponsorship opportunities go to:  sponsorbestmortgagebook.info

©

How Can Knowing Your Mortgage Options Help You?

Rich Rosa, co-founder and co-owner of Buyers Brokers Only, LLC asks “Is a Lack of Understanding About Mortgages Holding Back Home Buyers?”

Possibly….this is one of the reasons I wrote my book. The mortgage process is confusing to say the least and whether you’ve never applied for a mortgage before or have multiple mortgages, the more you know about the process, the better. I believe that an educated consumer is our best client. An educated consumer asks better quality questions and is more comfortable discussing and exploring their loan options.

Most people don’t know how much home purchasing power they have, how much to expect for closing costs (varies by state), or how much paperwork is involved when applying for a home loan. Most people have no idea the difference between loan programs from bank to bank, lender to lender, or broker to broker— or what the differences are between the main types of residential mortgage providers. Most people have no criteria for choosing a lender, the type of loan to seek, or how much down payment is best for them. For example, are their differences between the types of property that may affect down payment?

The mortgage industry is packed with nuance, which can lead to confusion for the consumer. While trying to buy a home, you may have people from many different professions telling you what you should do and how to make decisions—who should you listen to in which situations? Your most personal financial information is critical to the mortgage process and yet do you know who you are sending it to? What about mortgage insurance? Why is it required and when?

The two questions I most often hear are: “What’s the payment?” and, “What’s the interest rate?” While these questions are important, there are several other questions that are just as critical: what is the right loan type for me; is there an up-front funding fee for this loan; what are the differences in available mortgage insurance; how will property type restrictions affect my loan; what are the pros and cons of this loan; what is the down payment requirement with this loan choice over another; what are the closing costs associated with each loan type; and, who is allowed to pay the closing costs? Successfully navigating the maze of questions, regulations, and requirements ultimately leads to a mortgage closing.

Email me at info@bestmortgagebook.com for my Free Checklist “Questions to Ask When Selecting a Lender”.

For more information on loan documents, read my #1 Best Selling Book on Amazon

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

For sponsorship opportunities go to:  sponsorbestmortgagebook.info

©