Some Things to Keep in Mind when Getting a Mortgage in 2017

Posted on February 25, 2017 by Scott Li

In the months since President Trump won the election, the housing market – and the mortgage industry in particular – has gone through some serious changes. If you’re rethinking your plan to buy a house this year, or if you’re wondering whether it’s worth it to buy, here are a few things you should keep in mind.

Interest Rates are Up

The main change that has everyone talking is the Federal Reserve’s decision to increase its interest rates and the record-breaking Dow Jones Industrial Average that topped out at over 20,000 points in January. These two factors combined have pushed mortgage rates ever higher, and the popular 30-year fixed mortgage is now associated with an interest rate of over 4%. These climbing interest rates will undoubtedly add to the amount you’ll pay for your home over the course of 30 years, but the small increase will have only a very small impact on monthly mortgage payments – at least for those who obtain traditional mortgages. read more

Mortgage Applications See a 3.2% Drop

Posted on February 24, 2017 by Scott Li

President Trump started his career in real estate, and many people believed that this would lead him to make wise decisions that would ultimately benefit both home buyers and sellers. The administration’s very first move in the real estate market has caused FHA mortgage applications to drop 3.2%, and many people are wondering if FHA loans are still worth it.

What Are FHA Loans?

An FHA loan is a mortgage loan offered by most traditional lenders and insured by the Federal Housing Administration. Because the loan is insured, lenders are often willing to extend FHA loans to borrowers who have less-than-perfect credit and who may be turned down for traditional mortgages. These loans come with low down payments and reasonable interest rates, but there’s one major caveat – borrowers must also pay for mortgage insurance, which protects their lenders if they should default on their loans. This insurance is a form of risk mitigation for lenders, and it has allowed millions of people to buy homes across the country. read more

Interest Rates Fall as Economic Expectations Normalize

Posted on February 23, 2017 by Scott Li

With so much happening in the stock and housing market the last few months, interest rates have been a bit unpredictable. As of February 9, the rates for a 30-year fixed mortgage fell to 4.01%, which is three basis points lower than last week, but still higher than last month’s average of 3.90%.

The Federal Reserve

Although the Federal Reserve raised its interest rates in December of 2016, signifying an anticipated turning point in the economy, the Fed voted unanimously to avoid yet another increase that could have taken effect this month. Although the economy is certainly improving – as is evident with the record-breaking Dow Jones Industrial Average that surpassed 20,000 points for the first time in history last month – many experts still aren’t certain when it comes to the future of the economy, and the Fed is taking a “wait-and-see” approach. This is undoubtedly the best possible choice to make right now – at least until things stabilize further. read more

Why NJ Might Have Mortgage-Related Opportunities Very Soon

Posted on January 29, 2017 by Scott Li

New Jersey leads the United States in foreclosures. In fact, as of June 2016, just under 1% of the state’s entire housing was in foreclosure. Unfortunately, it doesn’t seem like things are getting better. New data shows that 65,000 people in the state are behind on their mortgage payments, making these properties “distressed”. State officials are considering ways to help people who have fallen behind, which may create opportunities in the very near future.

New Jersey vs. the National Average read more

New Jersey Helping Out Homeowners in a Big Way

Posted on January 28, 2017 by Scott Li

New Jersey leads the nation in foreclosure rates and significantly late mortgage payments, and it has for the last several consecutive years. The Garden State is still feeling the effects of the housing crisis, and people there struggle to catch up (or stay caught up) on payments. Fortunately, thanks to federal and state funding, there are some helpful options for homeowners who are facing tough times.

The HomeKeeper Program

Although New Jersey isn’t the only state in the country still reeling from the housing crisis, it is one of the best states in the country for obtaining financial help for keeping your home in certain circumstances. The state’s HomeKeeper program is open to anyone who is facing financial hardship like divorce, death in the family, significant injury or illness, underemployment, or unemployment. This program is designed to help cover monthly mortgage payments – at least partially – to help New Jersey residents keep their homes. read more

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