Home Financing
Important Facts About Rates
When you ’ re looking to purchase or refinance a home , the most important step is to make sure you are working with an experienced professional — one that can guide you toward the loan product that fits your lifestyle and your long- and shortterm financial goals . But you can do a little of your own research too .
Awarded Top Honors to include the Circle of Excellence award for the past two years , Laura Lundy has been originating loans in Morgan HIll since 1985 . Contact her at 408.482.7649 .
Jenny Boffy has over a decade of extensive financial lending experience . Jenny understands the importance of family values and understand how the perfect home can enhance a family ’ s lifestyle . Contact her at 408-426-5877 . l
www . wjbradley . com
320 Digital Drive Morgan Hill , CA 95037
While a loan should not be selected on the basis of its interest rate alone , the rate is one of the factors to consider as you shop for your new mortgage . Here is some simple information that can put you ahead when it ’ s time to sit down and look at available mortgage products :
What are mortgage interest rates based on ? Mortgage interest rates primarily reflect the performance of the U . S . bond market . Many people who follow financial news believe that it is mortgage baked securities that predict the rates ; however , rates fluctuate daily and are affected by many other factors as well . Unless you are a skilled economist , predicting the rise and fall of interest rates can be very time-consuming and challenging .
What is the benefit of an adjustable-rate mortgage ( ARM )? If you ’ re looking for smaller monthly payments and lower qualifying requirements , if you plan to be in your home for a short time or if you need to keep more cash in your pocket for the near future , an ARM may be just what you ’ re looking for . The fixed initial period is a great way to have the security of a fixed-rate mortgage at a lower initial rate . All ARMs have caps that prevent the rate from rising above a certain point . Caps affect both periodic changes ( for instance , your interest rate
Jenny Boffy , Mortgage Loan Advisor W . J . Bradley Mortgage NMLS # 203209
Laura Lundy , Loan Officer W . J . Bradley Mortgage Capital , LLC NMLS # 244662
can only change every six months or so ) and lifetime changes . A lifetime cap is a percentage that , when added to the start rate , tells you how high your interest rate can rise over the life of the loan .
What does it mean when the Federal Reserve changes rates ? The Federal Reserve controls two short-term rates , the Fed Funds Rate and the Discount Rate . Both impact short-term loans such as credit cards and auto loans . When the Fed raises the Fed Funds Rate , this helps to combat inflation ; this is good for bonds because inflation makes that bond worth less as time passes . This is also good for mortgage rates , which tend to drop .
The bottom line here is that if you use a good reputable Mortgage Consultant for your financing needs , they will keep you abreast of what the market is doing . If you are ever confused about rates , ALWAYS ask questions . Also , if something sounds too good to be true , then it usually is . So be very realistic . If the market is at 4.50 % APR and someone offers you a 3.50 % APR , then proceed with extreme caution . Buying or refinancing a home is one of the largest and most important financial transactions you will ever make . Be sure you have the answers you need from a source you trust .
© 2013 W . J . Bradley Mortgage Capital , LLC . 6465 Greenwood Plaza Blvd , Suite 500 , Centennial , CO 80111 Phone # 303-825-5670 . NMLS ID 3233 . Trade / service marks are the property of W . J . Bradley Mortgage Capital , LLC . This is not a commitment to lend . Restrictions apply . All rights reserved . Some products may not be available in all states . WJB is not acting on behalf of or at the direction of HUD / FHA or the federal government . All Borrowers and properties securing Mortgage Loans must be approved by WJB . Loan terms subject to change without notice .
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