Tag Archives: mortgage rates
Are you putting off mortgage refinancing?

I am still amazed when I get a call from a client and find out they have interest rates near or exceeding 5% or higher.  When we finish looking at their particular financial situation and see how they can save by refinancing the comments are often the same, “I wish I had done this earlier.”

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Here’s the 10 most usual comments I hear from clients when asked why they have not refinanced?
1.  I’m just too busy!
2.  Not sure how long I will stay in the house.
3.  I thought my other borrower would do it
4.  My neighbor said our house was valued too low
5.  I didn’t think I would qualify?
6.  Refinancing is a real pain.
7.  Mortgage companies have tightened up lending.
8. Not sure if I would save any money.
9. My accountant or tax advisor told me to do it last year.
10.  I thought mortgage rates were going lower?

OK, you’ve got the idea.  No one knows you’re situation when it comes to mortgage financing and whether or not it makes sense, other than you.  However, you never know if it makes sense or not to refinance, unless you know all the answers.

Making a note of #10.  Considering where mortgage rates are now, refinancing or buying a house today is the best ever. When you consider all permaters, such as inflation and taxes, leveraging your asset at the lowerst possible rate has never been better and has never made more sense.

I have a suggestion.  Give us a call and let’s see if refinancing makes sense for you.  If it does, then you still have the opportunity to shop around or let us help you, either way, we have performed a vital service to you and your family!

Give us a call, we’re here to help!

Delaware Home Sales Strengthened in November

delawareonline

com/article/20121218/BUSINESS/312180058/Del-home-sales-prices-up-November” title=”Wilmington News Journal” target=”_self”>Wilmington News Journalinterest rates at or near record lows

 Keeping interest rates low will be tied to employment dropping to 6

5% and inflation increasing to 2

5%

In other words, if employment drops to 6

5% or inflation creeps upward to 2

5%, this will trigger an increase in rates

 In the past, the largest factor influencing interest rates rising has been inflation

 

Lower interest rates translate into more buying power for you

Lower mortgage rates can give buyers greater purchasing power

 For example let’s look at a purchase on a $300,000 – 30 year mortgage, a 5

25 percent rate results in a $1,656 per month payment

A 3

25 percent interest rate drops the payment to $1,305 per month, or a savings of $351 per month

 This is quite a difference when computed over a 30 year mortgage

 

Sales are up and mortgage rates are down, but can I still get qualified?  
Answer: Yes you can!  

The 3 primary factors that influences home purchase qualifications are:

1

 Income
2

 Assets
3

 Credit score

Bottom line,  if you’re thinking of buying a home right now, then lower mortages rates and attractive housing prices should convince you that now is the time to buy before inflation rises

 

*Rates used in examples are for illustrative purposes only and should not be considered an offer 

 

**Inflation is a rise in the general  This entry was posted in blog and tagged , , , on by .

Homeowners in Delaware get fired up about refinancing!

interest rates, mortgage, DelawareAs mortgage rates have tumbled to all-time lows, the demand for refinancing has fired up homeowners in Delaware.

And it’s not just those Delaware homeowners who have underwater mortgages. With rates for 30-year mortgages at an all time low, many Delaware homeowners are trying to get their monthly mortgages reduced.

Along with months of low interest rates, other factors are driving the refinancing boom: a more competitive lending market and changes in some federal refinancing programs for struggling homeowners.

If you are among those Delaware homeowners who are struggling, you can call us here at Delaware Financial Capital about changes in the federal Home Affordable Refinance Program (HARP 2.0) and FHA refinance programs that have made refinancing options more plentiful.

 

WHY REFINANCE?  Some primary reasons for refinancing a mortgage could be to:

  • Lower monthly mortgage payments.
  • Free up home equity cash for home improvements, college costs or other expenses.
  • Shorten the loan term from a 30- to a 15-year mortgage, which can save thousands in interest payments.
  • Saving money is usually the biggest incentive.

SHOULD YOU REFINANCE?

Every homeowner’s situation is different. There’s no right or wrong answer. The only answer is what works for you and your family.

Our mortgage specialists are here to answer your questions, simply call us at (302) 266-9500 or simple fill out our online form below:

 

 

questions-contact-our-mortgage-speciali

How Mortgage Loans Work

How Mortgage Loans WorkExcluding property taxes and insurance, a traditional fixed-rate mortgage payment consist of two parts: (1) interest on the loan and (2) payment towards the principal, or unpaid balance of the loan.

Many people are surprised to learn, however, that the amount you pay towards interest and principal varies dramatically over time. This is because mortgage loans work in such a way that the early payments are primarily in interest, and the later payments are primarily towards the principal.

In the beginning . . . you pay interest
To help calculate monthly payments for loans based on different interest rates, lenders long ago developed what are known as “amortization tables.” These tables also make it fairly easy to calculate how much money of each payment is interest, and how much goes towards the principal balance.

For example, let’s calculate the principle and interest for the very first monthly payment of a 30-year, $100,000 mortgage loan at 7.5 percent interest. According to the amortization tables, the monthly payment on this loan is fixed at $699.21.

The first step is to calculate the annual interest by multiplying $100,000 x .075 (7.5 %). This equals $7,500, which we then divide by 12 (for the number of months in a year), which equals $625.

If you subtract $625 from the monthly payment of $699.21, we see that:

  • $625 of the first payment is interest
  • $74.21 of the first payment goes towards the principal

Next, if we subtract $74.21 (the first principal payment) from the $100,000 of the loan, we come up with a new unpaid principal balance of $99,925.79. To determine the next month’s principal and interest payments, we just repeat the steps already described.

Thus, we now multiply the new principal balance (99,925.79) times the interest rate (7.5%) to get an annual interest payment of $7,494.43. Divided by 12, this equals $624.54. So during the second month’s payment:

  • $624.54 is interest
  • $74.67 goes towards the principal.

Equity
As you can see from the above example, even though you pay a lot of interest up front, you’re also slowly paying down the overall debt. This is known as building equity. Thus, even if you sell a house before the loan is paid in full, you only have to pay off the unpaid principal balance–the difference between the sales price and the unpaid principle is your equity.

In order to build equity faster–as well as save money on interest payments–some homeowners choose loans with faster repayment schedules (such as a 15-year loan).

Time versus savings
To help illustrate how this works, consider our previous example of a $100,000 loan at 7.5 percent interest. The monthly payment is around $700, which over 30 years adds up to $252,000. In other words, over the life of the loan you would pay $152,000 just in interest.

With the aggressive repayment schedule of a 15-year loan, however, the monthly payment jumps to $927-for a total of $166,860 over the life of the loan. Obviously, the monthly payments are more than they would be for a 30-year mortgage, but over the life of the loan you would save more than $85,000 in interest.

Bear in mind that shorter term loans are not the right answer for everyone, so make sure to ask your us about what loan makes the best sense for your individual situation. 

Give Delaware Financial Capital Corp. a call at 302-266-9500 or simply click on the button below and fill out our online form

 

contact-sam

Refinance or not to Refinance – Top Ten Considerations

describe the imageOne thing is for sure, if you have the right situation that works for you and your family, then you can greatly benefit from refinancing your home mortgage loan. The best way to figure out whether you, in particular, are in that situation is by talking to professionals and comparing mortgage rates and program; we do that for you here at Delaware Financial Capital Corp.

Did you know that everyday hundreds of people here in Delaware who refinance their home mortgage?  If you have the right situation refinancing your home mortgage can be the smartest financial decision you make this year.  Check out the top ten considerations in deciding whether to refinance or not to refinance. First, you have to determine if the fees and time it takes to refinance are going to be worth it for the amount of money you will save?

  1. Will refinancing my home lower my rate?
  2. Can I reduce my term or shorten the duration of current loan term?
  3. Do I have enough equity to take cash out, to pay for a home improvement, education, or some other worthwhile family endeavor?
  4. How long it will take me to recover my closing fees?
  5. Will rates get any better?  Or, can the bond market be timed?
  6. Is my mortgage an adjustable ARM?  Should I do a fixed rate loan why rates are this low?
  7. Will the process be overwhelming?
  8. How long will I be in my house?
  9. Can I consolidate some credit card debt using my home equity and create a lower payment and a tax advantgage?

There is a continuous change in the mortgage industry used to determine if your refinance loan makes both dollars and sense; such as, interest rates, your house value, credit rating, current equity and debt standing.  These things may make any possible now for you to consider a new favorable refinance loan.

  1. Take advantage of a lower interest rate
  2. Shorten or lengthen the duration of your loan
  3. Lower your monthly payments
  4. Get cash out
  5. Lock in a fixed rate while they are still low

It’s Alright to have Concerns about Refinancing

Just as with the creation of any other new loan there are fees associated with refinancing your home mortgage. Depending upon how long you have been paying on your current loan, the interest vs. principle pay down will be a consideration.

You also consider how much longer you will remain in your home. If you are going to save $2,400  a year by refinancing, but you have to spend $4,000 to get it the refinance done,  then you will have to own that home for at least almost two years to realize any savings on that level, which is a very good return.

Overall consideration should include not only payment, but total interest reduction, which can be significant in today’s interest environment.

Regardless of any of these concerns, if your situation is correct, you can save a ton of money by refinancing your current home mortgage loan. Do the research by comparing mortgage rates with us, time is of the essence and it may not be in your favor, but why?

Mortgage Rates Can Go Up Quickly

When will rates begin to tick up?  The answer is quite simply; no one knows, but we are sure it is just a matter of time before we see rates begin to tick up.  Rates have a tendency to go up a lot faster than they go down. 

Pressure on financial institutions, corporate earnings, taxes, and the ever lying snake in the grass, “Inflation” will be the culprits to the return of higher interest rates.

How Can You Be Sure My Rates Won’t Change?

Our loan locks are good for 60 days and our prices reflect a 60 day lock.  We don’t low ball our rates by quoting rates for 10 or 15 day locks just to get you into our grasp, that’s not what we are all about. We’re upfront and will fully disclose all fees. 

Check out More Resources:

 

Begin your search to refinance your home mortgage today by doing your homework, and find a loan that is right for you.

Start now by giving us at (302) 266-9500 or simply click the button below to contact Sam.

 

Contact Sam!

Are we still in a Buyer’s Market?

delawareonline

com/article/20120515/BUSINESS06/305150009/Delaware-home-sales-stay-iffy-April”>Delaware OnLine, year-over-year sales in April were down slightly from 171 to 168 in Sussex County, remained flat at 116 in Kent County, and jumped from 395 to 420 in New Castle County, according to statistics from the Sussex County Association of Realtors and Trend MLS

Considering where we were compared to where we are now, Delaware homebuyers still have a great opportunity

  Never before have mortgage rates been so good

   The lower the rate, the more house you can qualify to purchase

You might be saying that your house has taken a pretty big hit over the last 3-4 years in reduce value

In reality, everything is relative

  Even though your house is less than in the past, so is the house you are going to purchase

 

The question: Are we still in a buyers’ market?  Yes, I believe, we are still in a buyers’ market and your timing could not have been better than right now to consider a home purchase

If you are a current homeowner, you might think it is a little scary to sell right now

  Timing is everything

  A house priced right will sell! 

The next question:  What is the best selling price for your home when you put it on the market to sell?  This is where a good Listing Agent is worth their weight in gold

  A good listing agent will perform a market study and suggest the right price for you to put your house on the market

 

If you are moving up to a larger home, transferring into Delaware, or a

defcc

com/first-time-homebuyers?utm_campaign=First-Time-Homebuyers” title=”first time homeowners” target=”_self”>first time homeowners everyday!

So let us help you purchase your first home!  Give us a call at 302-266-9500 or email at info@delawarefinancial

com

 

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