29 Aug 2016
By Mark Feder

What’s Ahead For Mortgage Rates This Week – August 29, 2016

Mortagage Tips
Last week's economic reports included readings on new and existing home sales, a speech by Fed Chair Janet Yellen, and a report on consumer sentiment. Weekly reports on mortgage rates and new jobless claims were also released. New Home Sales Rise in July as Pre-Owned Home Sales Fall Sales of new homes jumped in July to a seasonally-adjusted annual rate of 654,000 sales, which surpassed expectations of 579,000 sales and June's downwardly-revised reading of 582,000 sales. This was the highest reading for new home sales since 2008 and represented a 31.30 percent increase since July 2015. Builders were seen by…
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25 Aug 2016
By Mark Feder

The Type of Home You Want to Buy Determines Your Closing Cost and Here’s Why

Mortagage Tips
Savvy home buyers who are preparing to make a real estate purchase should do their research and understand that they need to save money for not only the down payment but the closing costs as well. The closing costs can account for as much as three to five percent of the sales price in some cases, so this can be a rather sizable amount of money. Some home buyers however, may not realize that the amount of closing costs can vary considerably based on the home that is purchased. With a closer look at why this is, home buyers can make a more educated decision when…
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22 Aug 2016
By Mark Feder

What’s Ahead For Mortgage Rates This Week – August 22, 2016

Mortagage Tips
Last week's economic news included the NAHB Housing Market Index, Commerce Department releases on housing starts and building permits issued. Weekly reports on mortgage rates and new jobless claims were also released. Shortages of available single-family homes have driven up home prices and increased competition among homebuyers; short inventories of homes for sale are affecting affordability in many areas, although buyers seem motivated by lower mortgage rates and some easing of mortgage requirements. Analysts have repeatedly said that the only solution to the shortage of homes is building more homes. Fortunately, the National Association of Home Builders reported that builder…
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29 Jan 2016
By Mark Feder

Video: What Is “Prime”?

Mortagage Tips
What Is "Prime"? The Prime Lending Rate - sometimes just called "Prime"  - is the interest rate that banks charge each other for overnight loans. Some consumer rates - like ARMs - are set in relation to Prime.In the US, Prime is affected by the Federal Reserve lending rate to banks; historically, Prime is about 3 percent above the Fed rate.The video shows  an example. The Federal Reserve loans to Bank A at 1% Bank A loans to Bank B at 4% Both banks - A & B - will recalculate variable-rate loans like ARMs on that 4% Prime figure.…
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