Winter Home Loan Tips!

It may still be winter, but it’s actually a great time of year to consider buying a new home or refinancing your existing home loan! Why? Because it’s actually a slower season than the one coming up! If you are in the market for a mortgage loan here are a few tips to make the most of the mortgage market in March.

1. Have a low, long-term rate on your existing mortgage loan?
 

We’re still in a rising interest rate environment. A quarter-point rate hike could boost the Annual Percentage Rate (APR) on your credit card, and other variable interest rate debt. We recommend you try to tackle your most expensive debts in case interest rates do continue to climb.

We also recommend you stop in or give us a call to do an account review with you. It’s possible we could save you money on a payment with a high-interest rate, or help you consolidate debt to save money.

2. Have an adjustable-rate mortgage (ARM)?
 

That super low-interest rate you’ve been enjoying on your five- or seven-year adjustable-rate mortgage will eventually change depending on your terms. When you enter into an ARM, you’re taking a chance that rates at the end of that term will be about the same or possibly better than the rate you’re locked into for the initial rate term. However, with rates expected to rise, chances are slim that you’ll be paying the same or less every month when your rate term renews. If you have a rate that’s a few percentage points higher when your initial term rate expires, that means your monthly payments could swell by several hundred or thousand dollars a month. The amount of interest you’ll pay over the life of the loan also will increase. Think about looking into refinancing your mortgage into a fixed-rate loan while rates are still favorable.

3. Don’t hold out for a price drop on the house you want.
 

Considering making an offer on a home? You may or may not want to wait and see if the sellers will lower their price. According to the Federal Housing Finance Agency’s Home Price Index, home prices have continued a slow but steady climb. There is also less inventory in the market right now. The scarcity of homes on the market means if you don’t jump on the home you want, there’s a good chance it will sell to someone else.

Want more information about a mortgage loan with Shore to Shore? Click here to get started.

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