When interest rates are on the rise, for new home buyers, it can be a challenge to win the game in a tight housing market. The Shopping Network, at http://www.iSaveSmart.com offers 10 tips to save in an unstable market.
Seattle, WA (PRWEB) March 10, 2006 -- As of March 10th, 2006, the 30-year fixed-rate mortgage rose 18 basis points to 6.45 percent, according to the Bankrate.com national survey of large lenders. It was the biggest one-week rise since May 2004. It is also the highest rate since September 2003, when the 30-year fixed rate was 6.47 percent.
The mortgages in this week's survey had an average total of 0.34 discount and origination points. One year ago, the mortgage index was 5.87 percent; four weeks ago, it was 6.32 percent. The 15-year fixed-rate mortgage rose 16 basis points to 6.09 percent.
The 5/1 adjustable-rate mortgage rose 11 basis points to 6.13 percent. Yes, the rate on a five-year loan is higher than the rate on a 15-year loan.
(Update) On March 17th, 2006, 30 year mortgage rates dipped to 5.88 percent. While mortgage rates are down, it is a great time to refinance. Since 2004, http://www.iSaveSmart.com has helped thousands of people get the lowest refinance rates with free quotes, from lenders at http://www.dpbolvw.net/click-1671490-10294248 . Five minutes can save you money on your next morgage payment. Go save today.
Nationally, home values increased 13% from the fourth quarter of 2004 through the fourth quarter of 2005, up from the 12.1% growth seen over the four quarters ended in Dec. 2004. The Mountain states showed the strongest home-value appreciation in the U.S., followed by the Pacific region.
Get free mortgage rate quotes at http://www.kqzyfj.com/click-1671490-10393333 to see if you can save money on your home purchase. Ten minutes now can save you money later.
In an effort to assist consumers with a home purchase, iSaveSmart.com offers ten tips to achieve a smooth mortgage transaction and get lower mortgage rates. By applying these tips essential home buying tips you will have an enjoyable experience with becoming a home owner.
1. Get educated. Knowing the terms associated with real estate transactions such as pre-qualified, home inspection, commissions, duel-agent, mortgage rates, good faith estimate, escrow and more can increase your home buying power.
2. Meet with a mortgage broker or lender. As a potential buyer competing for a property, you'll have a better chance of getting your offer accepted by being as prepared as possible. There are three levels of being prepared ranging from not prepared at all to fully prepared. The benefits available at each level can be more easily understood when you put yourself in the seller's position.
Pre-qualified, not pre-approved: This buyer provides a letter that they can afford to purchase your property.
Pre-qualified: This buyer has met with a mortgage broker (or lender) and discussed their situation. The buyer has informed the broker regarding their income, expenses, assets, liabilities and credit. The buyer provides you with a letter from the broker stating an opinion of what the buyer can afford.
Pre-approved: This buyer has provided a broker written evidence of income, expenses, assets, liabilities and credit. All information has been verified by a lender. As a result, much of the paperwork for this buyer's loan has been completed. They provide you with a pre-approval letter from the lender. You're as certain as possible that this buyer can close. Keep in mind that this letter becomes invalid after a certain point and you may need to get another credit report for the lender/broker.
3. Choose the correct lender. Think about the rate, total cost of your loan including the annual percentage rate, loan fees, discount and origination points. When receiving a quote from a lender or broker, ask that the discount points (charged by the lender to reduce the interest rate) be distinguished from origination points (charged for services rendered in originating the loan).
It is important to have confidence that the company you select is reputable and will deliver the loan with the terms and costs they promised. Ask family, friends and your real estate agent for names of lenders that have worked with and always interview prospective mortgage companies.
4. In some states, there are programs for low income people to get the lowest interest rate possible on their mortgage. Check with your State’s Housing Finance Commission for assistance.
5. Get a good-faith estimate. Within three business days after your loan application is received, you must receive a written statement of fees associated with the transaction. This is both the law and the best way to determine what you'll pay for the loan. Bring the good-faith estimate with you when you sign loan documents. When a mortgage company tells you they have locked your rate, get a written statement detailing the interest rate, the length of the rate lock and program details.
6. Use caution if using a dual agent - i.e., an agent who represents the buyer and the seller in the same transaction. The simple fact is that buyers and sellers have opposing interests. Sellers want to receive the highest price, buyers want to pay the lowest price.
In a standard real estate transaction, the seller pays the commission. When an agent represents both buyer and seller, the agent can tend to negotiate more on behalf of the seller. Also, find an agent who will be involved in the financing and who is knowledgeable in property inspection codes. You want an agent who does more than just fill in the blanks.
7. Get professional inspections. Unless you're buying a new home with warranties on most equipment, a home inspection is recommended. This way you'll know what you are buying. Inspection reports are also negotiating tools when asking the seller to make needed repairs. When a professional inspector recommends repairs, the seller is more likely to agree to do them. If the seller agrees to make repairs, you and your inspector should verify that they are done prior to close of escrow. However, it is your advantage to do the repairs yourself. Many sellers will just pay for a patch job that will cost you more down the road.
8. Shop for home insurance early. Start shopping for insurance as soon as you have an accepted offer. Many buyers wait until the last minute to get insurance and do not have time to shop around. Many automobile insurance companies offer home insurance and will give their customers discounts on auto insurance when they purchase home and or renters insurance. Home insurance covers the home, renters insurance covers your personal property.
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You will get quotes from insurance companies who want to give you the lowest price and great customer service.
9. Don't sign documents without reading them. You are spending a considerable amount of money. Read and understand what you read and what you sign. If you don't understand something, ask questions and review document ahead of closing. You will not have time to read the documents sufficiently at closing.
10. Use caution with making verbal agreements. Don't make them. But, if you do, double check to make sure that anything you agreed to verbally is in writing. Always ask a lot of questions.
Use these suggestions to get the home of your dreams. Visit one of iSaveSmart.com’s affiliate partners to get a mortgage rate quote from four lenders at
http://www.kqzyfj.com/click-1671490-10393333 or stop by iSaveSmart.com for other money saving offers at http://www.isavesmart.com .
iSaveSmart.com offers deep discounts on shopping, mortgages, insurance, movies and entertainment.
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