Monthly Archives: January 2012
Strategies for Paying Off Your Mortgage Faster
| January 11, 2012 | Posted by Tammy under Mortgage News |
When taking out a mortgage, buyers often consider how they will get a rate that will enable them to pay off their mortgage as quickly as possible. In other words, they want the lowest rate possible, as we all do. Many times it is often only those that are approaching retirement that actually start to think about how they will pay off their mortgage. With careful planning, paying off your mortgage faster can be a realistic goal regardless of what your rate is.
Paying Down Your Mortgage
- Pay your Mortgage More Than Once Per Month – Setting up a bi-weekly or weekly payment schedule can help you pay of your mortgage many times faster than by making a standard monthly payment. If you pay bi-weekly, you end up paying one or two extra mortgage payments per year which automatically reduces your amortization period.
- Increase Your payments When You Have More Money Coming In – Instead of using additional funds from a raise or bonus at work for something else, put it towards your mortgage every time you make a payment.
- Get a Reasonable Interest Rate – It goes without saying that it is important that you do your due diligence when shopping for a mortgage. While rate is only one of the factors to consider when choosing a mortgage professional, it is important that you choose your mortgage professional and rate carefully.
- Consider an Adjustable Rate Mortgage – While an adjustable rate mortgage may not offer the security of an unchanging mortgage payment, it can provide for a smaller rate and payment due than a fixed rate mortgage. This lower rate / payment will enable you to make larger payments towards the principal, which can help you pay off your mortgage significantly faster. Keep in mind that an adjustable rate mortgage may or not make the most sense for your needs, we can help you understand the options and which ones fit your needs the best.
If you abide by some of the above strategies, it may be possible to pay off your mortgage up to a decade earlier. Not having to pay substantial housing costs later in life can help ease a major financial burden and can free up money for retirement, college education for the kids, investments or other financial needs.
Mortgage Outlook for the Week of January 9, 2012
| January 9, 2012 | Posted by Tammy under Mortgage News |
This week is starting off slow with little economic data being released. Two major data releases may impact mortgage rates this week with Beige Book data (relied upon by Fed during their meetings) being released on Wednesday and Retail Sales being released on Thursday.
Some Fed members are speaking as well and the market is always listening for good or bad updates from Europe.
Economic Calendar for Week of January 9, 2012
- Monday - Consumer Credit
- Tuesday - Wholesale Trade
- Wednesday - EIA Petroleum Status Report, Beige Book
- Thursday - Jobless Claims, Retail Sales, Treasury Budget
- Friday - International Trade, Consumer Sentiment, Import & Export Prices
Should I Lock Now or Wait?
Since mortgage rates are very close to their all time historical lows, there is likely much more to gain by locking now then by waiting. It only takes one piece of news to push rates up and when they move up, they move much faster than they move down. That being said, the market may have changed by the time you’ve read this, so calling us is the most sure way to get the most up to the date guidance in whether locking makes sense for you and what loan program best fits your needs.
Mortgage Outlook for the Week of January 3, 2011
| January 3, 2012 | Posted by Tammy under Mortgage News |
First and foremost, we hope everyone had a safe and happy New Year’s! Here’s to a prosperous 2012!
Mortgage rates are starting 2012 near the all time record lows they reach multiple times in 2011. That’s great news for those looking to purchase a new home or looking to refinance their existing mortgage to a lower rate and or take out cash.
Mortgage Rates Moving Forward this Week
There are a few pieces of data being released this week that could move mortgage rates, but the Employment report on Friday is the big report of the week. Positive data for employment may mean that mortgage rates could move higher since mortgage rates tend to move down with bad economic news and up with good economic news.
This inverse relationship is due to investors moving their money away from stocks and into bonds (causing mortgage rates to decrease ) when bad news is reported and investors moving their money away from bonds and into stocks (causing mortgage rates to increase ) when good news is reported.
Economic Calendar for Week of January 3, 2011
- Monday - New Year’s Day Observed
- Tuesday - Construction Spending, FOMC Minutes
- Wednesday - Factory Orders
- Thursday - ADP Employment Report, ISM Non-mfg Index
- Friday - Employment Situation
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