Tag: HomeServices Lending

Categories
Home Buying Tips Home Insights Home Selling Tips Newsletter Featurettes

What You Need to Know Before Purchasing Summer 2019

What You Need to Know before Buying this Summer

With consumer confidence high and mortgage rates low, our local home-buying market is hot!  Here are some essential tips to get prepared and stay ahead of the pack as multiple offers and quick sales will rule the summer.

Get pre-approved

The first step in the home-buying process is getting pre-approved with a top lender.  That way, you’ll be all set to make a strong, serious offer when you find the right property.  Contact out in-house lenders at Prosperity Home Mortgage for great rates and service!

Be the first to know

With homes selling quickly, you’ll want to be the first to know about new listings as they hit the market.  Rector Hayden’s top local home search website – RectorHayden.com – is updated at the top of every hour, as is our mobile home-search app.

Do smart searches

It’s easy to do your home search, no matter where you are or how you like to get your information. Download the Rector Hayden Home Search app for iPhone, iPad and Android to get access to every home for sale on our Central Kentucky MLS. Our mobile app allows you to search based on plenty of different criteria. Use our app and find homes that fit within two different commute times (ex: close to work and close to school!).

Download our mobile app here on Google Play or here and here on Apple Store. You can save searches and receive alerts for homes that match your criteria!

Get to know your ideal location

As you narrow things down, visit your preferred neighborhoods and talk with neighbors and local businesses. To learn more about current issues and any concerns, contact the local neighborhood association.

Open House season is upon us

It’s an exciting time of year to explore your options. Check out our upcoming Open House list anytime at RectorHayden.com.

Make your first offer your best offer

It’s a seller’s market. You’ll want to discuss with your Rector Hayden Agent how to tailor your offer to appeal best to a seller.   An experienced agent can make all the difference in your negotiations!

Estimate the Value of your HOME

Click here to see an estimate or call your Realtor at Rector Hayden to get a more specific home value report.

Know your Market

Ask your Realtor to investigate our neighborhood, community trends, and give you a market report. You can also see the month of June’s market trends here!

 

curated by Keith Rector

 

 

Categories
Home Buying Tips Home Insights Newsletter Featurettes

How Might Changing Interest Rates Affect Home Buyers?

How Might Changing Interest Rates Affect Homebuyers

Do fluctuations in rates have a big impact on homebuyers?  Here’s the scoop on rates, affordability – and why now is the time to buy.

How affordability is affected by changing rates

As interest rates increase, the buying power of a borrower is lessened. Let’s say a homebuyer has $1,200 to spend on their monthly mortgage payment. If rates are 4 percent and the borrower secures a 30-year fixed conforming loan, their loan could total around $250,000. The monthly mortgage payment in these conditions would be $1,194.

Now let’s say rates rise 1 percentage point to 5 percent. With all the mortgage terms remaining equal, the borrower would pay $1,208 monthly for a loan totaling $225,000. That’s a difference of $25,000, or 10 percent, in buying power.

Many first-time buyers do not have a large down payment, and government and private lenders have changed their standards in order to accommodate these high earners with minimal savings. FHA loans can now be secured for as little as 3.5 percent down, while conventional (private) loans have a minimum of 3 percent down.

While these newer minimums have prompted many first-time buyers to enter the market, it also means these buyers are relying heavily on financing. And if rates increase slightly, they may need to look at adjusting their home buying budget a little.

 

The silver lining

The reality is that our local market is still a great place to buy!  Mortgage rates have risen slightly…but remain historically low.  During the last economic expansion from 2001-2007, mortgage rates hovered between 5% – 7%.  And in the 1990’s, rates were even higher, skirting between 7% – 9%.   Even with a slight uptick in rates over the past few months, it’s a great time -right now- to buy a home in Lexington and Central Kentucky!

Wondering What Current Rates Are?

Visit our partners over at HomeServices Lending to see current rates for multiple loan types. https://kentucky.homeserviceslending.com/rates

Do You Know The Different Types of Loans?

Check out our previous article, “Loan Types: Insights for Home Buyers”

 

Categories
Home Buying Tips Home Insights Newsletter Featurettes

Loan Types – Insights for Home Buyers

If you’re considering buying a home, having a knowledge of basic mortgage terminology can help prepare you for meeting with a mortgage consultant. Here are insights you can use to understand basic loan types and how they affect different types of borrowers.

 

Fixed-rate vs. adjustable-rate mortgages

One of the first choices you’ll make when applying for a loan is if you want to have a fixed-rate mortgage or an adjustable-rate mortgage.  A fixed-rate mortgage has an interest rate that does not change for the life of the loan, so it provides predictable monthly payments of principal and interest.

An adjustable-rate mortgage typically offers an initial introductory period with a low interest rate. Once this period is over, the interest rate adjusts periodically, based on the market index. The initial interest rate can sometimes be locked in for different periods, such as one, three, five, seven or ten years. Once the introductory period is over, the interest rate typically readjusts annually.

Government-backed loans vs. conventional loans

There are two primary types of government-backed loans: FHA loans and VHA loans.

FHA loans are insured by the Federal Housing Administration and are typically designed to meet the needs of first-time homebuyers with low or moderate incomes. FHA loans can be approved with a down payment as little as 3.5 percent. Because the agency is taking on more risk by insuring these loans, the borrower is expected to pay mortgage insurance and the property must be owner-occupied.

VA loans are backed by the Department of Veteran’s Affairs and they are guaranteed to qualified veterans and active-duty personnel and their spouses. VA loans can be approved with 100% financing, meaning VA borrowers are not required to put down a down payment. Unlike FHA loans, borrowers do not have to pay mortgage insurance on VA loans.

Want more information on FHA and VA loans? Visit: https://kentucky.homeserviceslending.com/pages/fha-and-va-loans

 

Conforming loans vs. jumbo loans

Fannie Mae and Freddie Mac are two government-owned institutions that buy and sell mortgages on the aftermarket. By selling the loans to “Fannie and Freddie,” lenders can free up their capital and return to issue more mortgages than if they had to personally back every loan that they approve.

If a loan meets the standards that Fannie and Freddie have set, then it is considered to be a “conforming loan.” More than 90 percent of loans that are issued in the U.S. are conforming loans.

One main standard for conforming loans is that the loan must be under a certain amount. While loan limits can vary by county, the conforming loan limit for all counties in Central Kentucky is currently $484,350. If a buyer asks to borrow more than $484,350 in Lexington or Central Kentucky, the loan is considered a “jumbo loan.”

Jumbo loans are considered to be riskier for the lender, so the bank will typically require a higher down payment. Additionally, the interest rate on a jumbo loan may be higher than if the same borrower applied for a conforming loan.

Want more info on Jumbo or Non-Conforming Loans? Visit: https://kentucky.homeserviceslending.com/pages/jumbo-financing

Need help financing a new home? Understanding the loan types is step one. Step two is getting pre-qualified or pre-approved, so you know where you stand. Reach out today to get connected with a HomeServices Lending expert who can help you, no strings attached!

Second Opinion Incentive

We’ll give you a $100 Target Gift Card just for coming to us and getting a second opinion on your pre-approval.

Step 1: present a copy of the loan estimate or pre-approval letter from a non-affiliated lender

Step2: Obtain a pre-approval letter from us, allowing you to compare offers

https://kentucky.homeserviceslending.com/uploads/pages/2nd_Opinion_0_All_03312019_v2.pdf

 

 

Categories
Home Buying Tips Home Insights Newsletter Featurettes

How Might Changing Interest Rates Affect Home Buyers?

How Might Changing Interest Rates Affect Homebuyers

Article Updated: April 2018
Do fluctuations in rates have a big impact on homebuyers?  Here’s the scoop on rates, affordability – and why now is the time to buy.

How affordability is affected by changing rates

As interest rates increase, the buying power of a borrower is lessened. Let’s say a homebuyer has $1,200 to spend on their monthly mortgage payment. If rates are 4 percent and the borrower secures a 30-year fixed conforming loan, their loan could total around $250,000. The monthly mortgage payment in these conditions would be $1,194.

Now let’s say rates rise 1 percentage point to 5 percent. With all the mortgage terms remaining equal, the borrower would pay $1,208 monthly for a loan totaling $225,000. That’s a difference of $25,000, or 10 percent, in buying power.

Many first-time buyers do not have a large down payment, and government and private lenders have changed their standards in order to accommodate these high earners with minimal savings. FHA loans can now be secured for as little as 3.5 percent down, while conventional (private) loans have a minimum of 3 percent down.

While these newer minimums have prompted many first-time buyers to enter the market, it also means these buyers are relying heavily on financing. And if rates increase slightly, they may need to look at adjusting their home buying budget a little.

 

The silver lining

The reality is that our local market is still a great place to buy!  Mortgage rates have risen slightly…but remain historically low.  During the last economic expansion from 2001-2007, mortgage rates hovered between 5% – 7%.  And in the 1990’s, rates were even higher, skirting between 7% – 9%.   Even with a slight uptick in rates over the past few months, it’s a great time -right now- to buy a home in Lexington and Central Kentucky!

Wondering What Current Rates Are?

Visit our partners over at HomeServices Lending to see current rates for multiple loan types. https://kentucky.homeserviceslending.com/rates

Do You Know The Different Types of Loans?

Check out our previous article, “Loan Types: Insights for Home Buyers“

FREE Seminar: Buying Your First Home w/ Julie Morris, REALTOR

First Time Homebuyer

Join Julie Morris, REALTOR, and Marcos Volpini, of HomeServices Lending, at Rector Hayden on March 7th at 6:30pm to learn all about the process towards home ownership!

Pizza and drinks will be served.


1099 Duval St. Ste 250, 2nd floor – see balloons!
Lexington, KY 40515

Categories
Home Buying Tips Home Insights Newsletter Featurettes

Loan Types – Insights for Home Buyers

If you’re considering buying a home, having a knowledge of basic mortgage terminology can help prepare you for meeting with a mortgage consultant. Here are insights you can use to understand basic loan types and how they affect different types of borrowers.

 

Fixed-rate vs. adjustable-rate mortgages

One of the first choices you’ll make when applying for a loan is if you want to have a fixed-rate mortgage or an adjustable-rate mortgage.  A fixed-rate mortgage has an interest rate that does not change for the life of the loan, so it provides predictable monthly payments of principal and interest.

An adjustable-rate mortgage typically offers an initial introductory period with a low interest rate. Once this period is over, the interest rate adjusts periodically, based on the market index. The initial interest rate can sometimes be locked in for different periods, such as one, three, five, seven or ten years. Once the introductory period is over, the interest rate typically readjusts annually.

Want more information about Fixed-rate and Adjustable-rate? Visit: https://kentucky.homeserviceslending.com/pages/fixed-and-adjustable-rate-mortgages

 

Government-backed loans vs. conventional loans

There are two primary types of government-backed loans: FHA loans and VHA loans.

FHA loans are insured by the Federal Housing Administration and are typically designed to meet the needs of first-time homebuyers with low or moderate incomes. FHA loans can be approved with a down payment as little as 3.5 percent. Because the agency is taking on more risk by insuring these loans, the borrower is expected to pay mortgage insurance and the property must be owner-occupied.

VA loans are backed by the Department of Veteran’s Affairs and they are guaranteed to qualified veterans and active-duty personnel and their spouses. VA loans can be approved with 100% financing, meaning VA borrowers are not required to put down a down payment. Unlike FHA loans, borrowers do not have to pay mortgage insurance on VA loans.

Want more information on FHA and VA loans? Visit: https://kentucky.homeserviceslending.com/pages/fha-and-va-loans

 

Conforming loans vs. jumbo loans

Fannie Mae and Freddie Mac are two government-owned institutions that buy and sell mortgages on the aftermarket. By selling the loans to “Fannie and Freddie,” lenders can free up their capital and return to issue more mortgages than if they had to personally back every loan that they approve.

If a loan meets the standards that Fannie and Freddie have set, then it is considered to be a “conforming loan.” More than 90 percent of loans that are issued in the U.S. are conforming loans.

One main standard for conforming loans is that the loan must be under a certain amount. While loan limits can vary by county, the conforming loan limit for all counties in Central Kentucky is currently $424,000. If a buyer asks to borrow more than $424,000 in Lexington or Central Kentucky, the loan is considered a “jumbo loan.”

Jumbo loans are considered to be riskier for the lender, so the bank will typically require a higher down payment. Additionally, the interest rate on a jumbo loan may be higher than if the same borrower applied for a conforming loan.

Want more info on Jumbo or Non-Conforming Loans? Visit: https://kentucky.homeserviceslending.com/pages/jumbo-financing

Need help financing a new home? Understanding the loan types is step one. Step two is getting pre-qualified or pre-approved, so you know where you stand. Reach out today to get connected with a HomeServices Lending expert who can help you, no strings attached!