Real Estate Mortgage Rates

From – Whether you are a first time home buyer, or you have been buying real estate for many years, one of your main aims other than locating the best piece of property would be to ensure your mortgage rate is as low as possible.

When buying a mortgage one of the most important things to remember is that rivalry is key to getting the best rate. Many first time home buyers make the mistake of not shopping about for a mortgage. They take the very first offer that is presented to them and frequently get a rate that may be as much as a couple of total points higher than rates for others with a similar fiscal foundation. They believe that their realtor is there to help guide them to the most effective alternative – when in reality they’re there to earn their commission. The very best guidance for new home buyers would be to always make certain that you separate your financial trade of purchasing the house away from the method of locating a house. The guideline is you should compare rates from at least three different providers, more in case you have the time.

Even experienced real estate buyers can occasionally end up over paying their interest. This is specially true in times of financial slowdown or when there is uncertainty in the credit markets. Often you have less than two days to lock in a rate once presented to you personally by your lender. In case you are doubtful whether speeds will go up or down after you lock in a good rule of thumb here would be to observe the 10-year Treasury note. Mortgage rates tend to follow the production for the 10-year note more than they do any other short-term investment, including Bank of Canada rate allowances.

When you do decide to lock in a rate be sure that you get it in writing, including a complete disclosure of the conditions. You may understand just what you are getting on what terms and how much time the rate lock is great for. Commonly, you wish to aim for 30-60 days to give you enough time to discover the house that’s right for you. Nevertheless, 30 days is becoming more standard as the rate marketplaces continue on their roller coaster ride.

You might also want to contemplate asking about a float-down deal to lock in the rate. Under this particular agreement the lender keeps the rate at your locked in worth should rates go higher, but when they decrease they lower the rate to coincide. The single drawback to these agreements is they may be expensive and determined by the size of the mortgage note the cost to enter into such an agreement may very well cancel any savings you would gain unless the mortgage rate fell by over half a point or more in many instances.

Locking in a mortgage rate is the best way to get the mortgage you would like at terms you’ll be able to agree with.

Read More

Should I Walk Away from My Mortgage?

jamieThere is a huge buzz going on in the world today regarding mortgages. The real estate market is calling it a buyers’ market. The problem is-no one is buying. With the recent turmoil surrounding the bail out and details coming to light in regard to huge mortgage lenders and the extent of their bad loans, added to the state of the economy, I believe people are afraid to buy. We don’t know what is going to happen. We may lose our jobs, not be able to make payments, the rates may drop even lower and we’d be stuck.

Part of the issue surrounding the bad real estate loans that our Government has taken on the responsibility of ‘bailing out’ is that a lot of people are simply willing to walk away from their mortgage. How does this happen? When you were house shopping, you decided you wanted your house. You arranged financing, filled out all the loan brokers paperwork, AGREED TO THE TERMS AND PAYMENT SCHEDULE and signed on the dotted line. You committed to that house at that price, for that payment, for that term. What changed?

Please know that I am not speaking as if I am self-righteous or kelowna-brokersjudgmental. I too have a mortgage I am three months behind on. I too have a house that is worth less than I owe. I too have a husband who was recently laid off. We have depleted our savings and are very afraid we may lose our home. But I am working full time, freelancing on several web sites as well as selling beauty products to help supplement our income. My husband just got a new job and hopefully we will be able to recover.

The point I am trying to make is we made a commitment. We made the decision, whether it was bad or good, smart or stupid, to purchase our home. We have a responsibility to meet that commitment. We made a promise. If I purchase something on credit and the value increases, I am not expected to pay more for that item. So why do we think that if we purchase a home and our home loses value because of the market conditions we should pay less? Or that we should not pay it at all? That is simply wrong, in my opinion.

I love my house and I am committed to keeping it. We have been in it for 8 years and have a 20 year mortgage. Our original plan was to keep it until our kids graduated from high school. Both my husband and I will do whatever it takes to make the payments and keep our home. We are willing to sacrifice and work together because that is what a commitment is.

kelowna-mortgage-brokerI encourage anyone in a like situation to communicate with your mortgage brokers or mortgage company. They may be able to offer you a renegotiation or a refinance option. You need to speak with them on a regular basis to avoid foreclosure. Look for ways to meet your commitment, not for ways to get out of it. Each of us must take responsibility for our own decisions regarding our finances. Win or lose, it is up to us.

Read More

How Debt Consolidation Can Help

How can you avoid getting yourself into credit card debt? Well, one way is to start out in life with no credit cards. This sounds crazy, but many people through choice or necessity live without these apparently vital attributes of modern life.

There are other ways to ensure that, for example, you can buy products on line or through mail order, the most familiar of which is Paypal. Many people associate Paypal solely with their bank account, rather than with a credit card, effectively using Paypal like a debit card for non face to face transactions. And if you have income from business activities such as selling on E-bay, you will almost certainly have a Paypal account which is receiving that income.

This enables you to have the convenience of buying on line and by mail order without the temptations of running up debt which credit cards offer.

If however you do have entirely unmanageable credit card and consumer debt which has just run out of control, and which is getting beyond your awn ability to manage it, then you should immediately seek out the services of a debt consolidation loans agency. A debt consolidator will not only give you helpful financial advice, but will take over the management of your debts on your behalf, leaving you free to think about earning the money you need to get yourself out of debt.

Read More