Are 7% Rates in the near future?

It certainly appears that rates could hit close to the 7% range in the near future. If the Feds raise rates 2 more times we will be near that range. One time will be on June 29. The next meeting is on August 8 and September 20. So it appears rates could be at 7 % easily be year end with 4 more Fed meetings after the June meeting. We want to stress that even at these levels rates are still very reasonable. Do your homework and do not take a higher rate than you need. Lenders all have different prices according to the profit they want to make. THEY ARE NOT ALL THE SAME.

Yes, Rates are on the way up but are they high?

With the CPI number coming out high today it is true the Feds will raise rates again but are rates really high even if they go to 7-7.25%? NO, in fact they would still be very low in comparison to previous years. In the 70's and 80's rates were MUCH higher than this and borrowers still bought homes. Yes it is true the homes were not as big and stuffed with goodies as they are today but does the borrower really need that big of a home and all the toys in it as soon as the buy it. Maybe it is time to reevaluate between your needs and your desires. Lower your expectations and maybe that payment might just be affordable. Do your homework and get the lowest rate you can. Do not believe the saying" rates are all the same". They are not because some Lenders want to make more than others. Borrowers are still in a very good position in today's marketplace. www.rateinformer.com

Inflation is a Bad word for Borrowers!

The Feds are watching Indicators this week for signs of Inflation. They feel they may need to slow the economy down by raising rates again to keep runaway prices from entering into our economy if it becomes overheated. That may have already happened in our housing market. Cost of building supplies are constantly moving up along with material shortages in areas. As prices rise more borrowers find their dream home out of reach which in turn should slow the housing market down. The problem is with the stock market and Interest rates being so low for years investors got into the real estate market and drove the prices up out of reach of many borrowers. Now they are trying to unload for a BIG profit. Some are going to get burned as borrowers are forced out of the market because of their high prices. www.rateinformer.com

Great Time for Borrowers

Rates have actually dropped by .125 as of last Friday and some housing prices have dropped in certain overpriced areas. The two items combine to make it a sweet spot for borrowers. Rates will go up and continue to do so but for now now enjoy the short life or a dip in rates. As for home prices at the level they were climbing many borrowers were being priced out of the market. Save your 5% down payment and keep your credit score up or work on getting it higher. We love the program at Emigrant Direct. It pays 4.65% and moves up as rates go up. You can cut corners and go on a budget and make it happen. Have you been working on those credit scores? If you are working on your credit you need to stay on top of it by checking it at My Fico.Com or Equifax. Then buying that home will not turn into the ordeal it does for some borrowers but could actually be a pleasant experience.

Rates are back down but for how long?

Rates have dropped today because of some indicators showing the economy slowing down. Investors feel that may give the Feds some thought about not raising rates again when they meet at the end of June. Some brokers may not lower their rates until Monday or late this afternoon. Make sure you have your broker update his pricing! It is your payment for a long time. This is no doubt just a short lived drop in rates so enjoy it. www.rateinformer.com

No free rides but great deals are out there

When you are getting a mortgage there is no such animal as a NO COST loan. You will pay for it in one way or another. They will raise your rate to cover the fees and closing costs and you will pay much more in the long run. If you are planning to move in a short period of time than it may not be a bad idea. If you are planning on living in the house for period of time (appx 3 years +++) than think about a rate without points and pay the closing costs. Shop for a broker who does not have excessive fees (they can be very different from one broker to another broker) and will give you a fair rate as we show on our website. The average life of a loan is about 7 years and most people move on after that. Save for your downpayment and work on your credit.We love the program at Emigrant Direct. It pays 4.65% and moves up as rates go up. You can cut corners and go on a budget and make it happen. Have you been working on those credit scores? If you are working on your credit you need to stay on top of it by checking it at My Fico.Com or Equifax. Put 5% down and have good credit and shop for the right price on the right home and you will be smiling every time you walk in the front door of your new piggy bank. www.rateinformer.com