interest rate
October 29, 2024
There are two types of letters you can get from a bank when you’re looking to buy a home: a pre-qualification letter and a pre-approval letter. Pre-qualification gives you a ballpark estimate on how much you’ll be able to borrow to buy a home, whereas a pre-approval is more detailed and says exactly how much you will be able to borrow. You should have a pre-approval letter before you are ready to make an offer on a home. Why You Need a Pre-Approval Letter to Start the Buying Process For many first-time buyers, once they get their pre-approval letter from a mortgage banker, the process begins. While you can make an offer on a home with just a pre-qualification letter, it […]
November 15, 2022
With all the talk of interest rates and federal interest rate hikes in the news, it makes sense to talk about it and how it impacts our daily lives. Being in the real estate business means these rate changes are something I monitor all the time – even when it’s not making the news. However, it does have a much farther-reaching impact on almost everyone. What Exactly IS the Federal Interest Rate? First, let’s address what it’s not. The Federal Interest Rate is not the rate consumers pay, though it does indirectly affect consumer rates. The U.S. Central Bank sets the Federal Interest Rate which is the rate at which bank-to-bank transactions are made. Every other interest rate in the […]
July 23, 2010
It’s time to start thinking seriously about purchasing a home. Here are 5 reasons that explain why homeownership is a great life decision for you and your family: 1) Interest rates for a 30 year fixed rate loan are the lowest they have been in 40 years and they are not going to stay that way forever. 2) It appears the market has hit bottom and will likely coast and slowly start to pick up. It’s in your best interest to buy now before prices start inching upward again. 3) If you are currently renting, your hard-earned money is really going down the drain. Instead you could be investing it in an asset. An asset you can use for tax breaks […]
February 3, 2010
It’s a major incentive for buyers right now. Business Week published an article in December titled “If you don’t buy a house now, you’re stupid or broke.” The article basically noted the historically low interest rates we are now experiencing. Rates are currently around 5%, the lowest they’ve been in 40 years. Here’s a look back so that you can see where we’ve been… Average of 9% in the 1970s 10% in the 80s and early 90s 7-8% for much of the 90s 6% only over the last couple of years You have to understand the impact the rate has on purchasing a home. Every quarter point change is equivalent to approximately $6,000 for every $10,000 borrowed over the course of a […]