Summer is cruising right along, the Jersey Shore is buzzing, and July brought plenty of activity to our local real estate market. Now that we're heading into the second half of August, it's a great
INCREASED MORTGAGE RATES! WHAT SHOULD I DO?
Dated: November 17 2022
Views: 77
In today's real estate market, the most significant conversation is about increased MORTGAGE RATES. In our real estate lingo series, we will review what the mortgage rates are and what are the key factors.
The definition of mortgage rates:
A mortgage rate is the rate of interest charged on a mortgage. Mortgage rates are determined by the lender and can be either fixed, staying the same for the term of the mortgage, or variable, fluctuating with a benchmark interest rate. Mortgage rates vary for borrowers based on their credit profile.
The mortgage rate is a primary consideration for homebuyers looking to finance a new home purchase with a mortgage loan. Other factors also involved include collateral, principal, interest, taxes, and insurance. The collateral on a mortgage is the house itself, and the principal is the initial amount for the loan. Taxes and insurance vary according to the location of the home and are usually an estimated figure until the time of purchase.
The borrower's credit score is a key component in assessing the rate charged on a mortgage and the size of the mortgage loan a borrower can obtain. A higher credit score indicates the borrower has a good financial history and is more likely to repay his debts. This allows the lender to lower the mortgage rate because the risk of default is lower. The rate charged ultimately determines the overall cost of the mortgage and the amount of the monthly payment. Therefore, borrowers should always seek the lowest rate possible.
Main take aways:
⬆️ Every scenario, individual financial situation and property is different, and the mortgage rates can also differ based on scenarios.
⬆️ Don't rely on the news; consult with financial advisors and mortgage professionals who can give you customized advice and idea on what you can do! Don't wonder, be prepared & educated about your finances.
⬆️ Stay on top of your credit score! A credit score is a huge factor; remember to keep it above 700 - you will have better opportunities when it comes to loans.
Click to read an article about the Mortgage Rates Forecast For the rest of 2022.
If you have any further questions, we have a list of professionals we can refer you to and can help you qualify and help you create strategize to make the best financial decision to maximize your investment. Give us a call today 📲 +609-834-3121 or email at contact@farleyandferry.com.
ANDI SINDERBRAND
Andi Sinderbrand is the Managing Broker and Marketing Director of Farley & Ferry Realty Inc., where she plays a pivotal role in driving sales performance, brand growth, and strategic direction for....
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