Aside from that, consumer spending has caused millions of unemployment, which led to homeowners’ inability to pay for their mortgages. Lending companies and banks have tightened lending procedures which even made things worse.

Banks have the option to lend money to their customers who wants to buy houses and other properties they desire. The amount of money they lend are controlled by mortgage rates and this usually varies based on the bank’s ability to lend money from the reserve bank. Nowadays, mortgage rates are depreciating because of economic instability. You might think that this is a bad thing, but what you must know is that this mortgage rate fluctuation can be used to your advantage.

Choosing the right kind of mortgage loan is key. When mortgage rates are low, you must apply for a fixed rate loan because this stabilizes your repayments for a certain period of time. This will save you a lot of money because you won’t have to increase your repayments if mortgage rates inflate.

You can also opt for a variable rate loan which allows you to change repayment values depending on existing mortgage rates. Apply for a variable rate mortgage loan when mortgage rates are high. Here, your repayments will depend both on interest and mortgage rates. Falling interest rates will result to a decreasing mortgage rate, and this will lower your loan repayments.

Choosing between fixed and variable rate loans will make you create a good financial save-up. You must also not forget to choose among different mortgage packages offered by different companies to check who among these can give you a more competitive deal. A loan broker can help you with this inquiry. Going for fixed-rate mortgages will be more beneficial for you in the long run.

Aside from the mortgage rate fluctuation, it’s also wise to check your credit score because this affects how much you pay for mortgage rates. Improve your credit rating before applying for a loan to qualify for better mortgage rates.

Finding your way through mortgage rates is easy if you are aware of the factors affecting it. To better help you out, consult with a mortgage loan broker to know what mortgage type is best for you. Save money, pay your bills, and improve your credit scores—these will help you qualify for a better mortgage rate.

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Well, the major reason why we close FHA loans the last week of the month, especially FHA Streamlines is because on FHA home loans, interest is calculated and paid on a monthly basis.  With conventional loans, interested is calculated and paid on a daily basis.

You see, if we were to streamline your current mortgage in the middle of the month and you have already paid all of your interest for the month up front, and then streamlines in the middle of the month, you would have to pay all of your interest again!  That is just no good.  We are trying to save you money, not have you spend anymore.

So, for anyone interested in a FHA Streamline, contact us and we will take your loan application, get your documents, get them to our amazing processor, find out what interest rate you are trying to get, once we can get your rate, we will lock the loan, and then we will close at the end of the month.  It is honestly as simple as that.

To get your steamline started or to find out what interest rates are, click here.

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I just got done checking interest rates and they are the lowest that I have seen them in about four weeks so now is an excellent time to purchase a home!

It is also a great time to purchase because housing prices in Utah and all over the country have plummeted and they are the lowest they have been in the last 4-5 years.

For those of you who are looking at purchasing a home, I would highly recommend that you do it before the end of the year, December 31, 2008 because of the amazing tax credit that the government is offering first time home buyers or those individuals and families who haven’t owned a home for the last three years.

If you have the ability to qualify for a home, you need to take action now and reap the benefits that I have listed above and stated in the video.  Contact us now for the most current interest rates and to get your mortgage underway.

P.S. For those of you who are not from Utah, dispite the name of our website we can do your mortgage for you!!  So please keep that in mind when searching for your mortage lender.

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Elder Perry talked a lot about debt and not getting yourself in over your head.  He also spoke about only purchasing a home that you can afford according to your income not according to your neighbors home across the street.  This really struck home since I have the opportunity to help so many people obtain mortgages on a regular basis.  It also caused me to reflect on the current mortgage industry, credit crunch, and the economy that we now live in.

One of the biggest reasons we are facing hard economic times and seeing all of the big banks and mortgage lenders go out of business is because of people who want to purchase a much bigger home than they can afford with their current income.  Have you ever heard of interest-only loans or adjustable rate mortgages?  I’m sure you have and I’m sure you probably know that they are pretty much obselete as of the beginning of the mortgage meltdown.  Most interest only loans and adjustable rate mortgages were used by individuals and families who could not afford the home that they wanted to purchase.  So, they made the terrible decision to obtain one of these loans and it ended up being detrimental to their personal finances, most times ending in foreclosure because they could not afford the payments.

For anyone looking at purchasing a home in the near future, I urge you to only look and consider homes that are within your income range.  No one wants to be “house poor” and no one wants to get in trouble and risk the possibility of losing their home.

Please contact us right now so we can pre-qualify you for a mortgage so you know exactly how much home you can afford.

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In the past, some people have gotten around this rule by obtaining two mortgages, one for 80% of the home and the other for how ever much they needed, I saw many get 100% financing so the other loan would be 20%.  Today, in with our economy the way it is, it is almost impossible to get 100% financing for any loan that you are considering.

If you are one of the lucky individuals who get to have private mortgage insurance (if you can’t tell, I’m being sarcastic), here is a very slick tool that I like to use to find out how much PMI you are going to pay each month.  To access this tool, click here.  I like this tool because it is very accurate, fast, and easy to use.  Much better than figuring it out by hand.

Hope you enjoy this tool and keep checking back for more mortgage news in the state of Utah and all around the nation.

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