Mortgage Rates Hit Their Highest

Mortgage rates hit their highest point
in over two decades this year. There. I said it. But that’s not the end of the
story.

Here’s why.

Even though interest rates are higher
than many of us would like, you can still go after your homeownership dreams
and save on a mortgage. Here’s what I’m sharing with prospective homeowners
this November.

1) Consider an adjustable-rate mortgage
(ARM).

An ARM is a great option for a monthly
payment that’s lower than the payments available with fixed-rate loans or for
buyers convinced rates will drop by the time the introductory period
ends.

Keep in mind that a year from now, some
experts are predicting 30-year rates will be around 5.25% and 15-year rates
around 4.875%.

2) Pay for points to buy down the
rate.

If you have extra funds at the time of
purchase, you can pay for mortgage points. With mortgage points, you pay a
percentage of the loan upfront in exchange for a lower interest rate — and a
slightly lower monthly payment.

Just make sure you calculate your
break-even point. If rates drop and you can refinance before you hit the
break-even point, buying down your rate may not be worth it.

3) Work on your credit score.

If time is on your side before applying
for a mortgage, improve your credit by paying bills on time, lowering your
credit utilization (using under 30% of your total credit line!), reducing
credit card debt, and addressing credit report errors. In the long run, a
higher credit score will save you on your mortgage.

4) Shop around.

Always, always, always shop around for
your mortgage. Same thing goes for homeowner’s insurance. Rates and premiums
vary widely, so talking with multiple lenders and carriers will ensure you have
the best price on both.

If you’re interested in learning more
about how to keep your mortgage payment low, I’d love to chat and help you
explore your options to find the best solution for your needs.

Source: When will mortgage rates go
down? – CBS News

6 ways to lower your mortgage costs in
today’s high rate environment – CBS News

-Megan
Stultz
Call or Text 936-537-2587
Megan@Southern-Luxury.com
www.Southern-Luxury.com