About Mortgage Interest Rates in Tooele UT
If you’re a potential homebuyers, waiting for house prices to go down. I have news for you: You ought to be more concerned about mortgage interest rates in Tooele UT.
Actually, this is also good advice for sellers waiting for prices to rise before putting their Tooele homes on the market, and here’s why: Higher interest rates equate to lower borrowing power.
Tooele home buyers may just be priced out of the market if interest rates go up, reducing the number of buyers available to purchase your home.
So, while it’s always a good idea to keep an eye on what's been happening in the local real estate market, watch economic forecasts as well. You need to get an indication of what the future holds regarding interest rates.
1. Who determines interest rates?
Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are privately held financial institutions, backed by the U.S. government. Although they aren’t owned or run by the government, they are known as Government Sponsored Enterprises, or GSEs.
When you obtain a mortgage your lender will sell it on the secondary market. Typically it’s one of these two GSEs who will purchase it. They then bundle it with others into securities and sell them to investors who are looking for stable payments over the long haul.
These lenders have an interest rate ceiling, above which they will not buy the securities. This rate, in a nutshell, determines the rate that your lender will offer you. It makes sense, right? The lender needs to ensure it will be able to sell your mortgage, thus keeping the flow of money going for its other clients.
2. Why Mortgage Interest Rates Matter
Your monthly mortgage payment has four components: principal, interest, taxes and insurance. To obtain a lower house payment, then, requires lowering one or more of these pieces. The obvious place to start is with the interest rate?
When looking at interest rates, what are typically considered minuscule fractions, such as 1 percent, are actually quite significant. “A one-percentage point difference in mortgage rates translates into at least a 10 percent difference in the monthly mortgage payment,” according to Jed Kolko, Trulia’s Chief Economist.
For the first-time homebuyer, the loan process comes with a steep learning curve. Don’t be afraid to ask questions and keep asking them until you get answers that help you understand the process.
More Information About Interest Rates
Now that you know what to look for, here are some articles from other agents around the country to review and perhaps use to understand Tooele real estate a little better
The Federal Reserve is inching closer to the first interest rate increase in nearly a decade, minutes of the central bankers' latest meeting indicated on Wednesday. The minutes of the Federal Open Market Committee's (FOMC) ...
The Federal Reserve has yet to say whether or not there will be a coming raise on short-term interest rates. The rate increase, which many would consider an integral part of the future goings of the stock market, was rumored ...
Before we get started, let's review what actually causes interest rates to go down or up: what the Federal Reserve does, what inflation is, how rate cuts and increases affect inflation, and the difference between target and prime ...
Need more help? Give us a call. Chris or Berna Sloan 435-840-5029. We know about Mortgage interest rates in Tooele UT, and a lot more to make your home buying safer & much easier.
Blog Archive2019-03-14 10:39:01
How Things Change in Tooele County Real Estate
When Buying Home Insurance in Tooele UT You Should Know What It Covers
Don't Let Divorce Ruin Your Mortgage
6 Questions To Ask Before Hiring a Tooele Real Estate Agent
Building a New Home in Tooele County UT
Why Shop Locally In Tooele County
300 miles To a New Home in Tooele County, but only 30 miles back!
Utah Real Estate is In Session @ The Capital
Time For Civility TO The Utah Legislature..Again
The Tooele County UT Neighborhood Wish List:
Old Stuff About Living In Tooele County Utah
Real Estate Advice and Tips about Buying and Selling Tooele County Houses.
Other Reasons Not To Wait To Buy a Tooele UT Home
Tooele County Real Estate Tips From Berna
Is What You Know About Buying Homes in Tooele Utah Wrong?
Tips On Picking Upgrades on Your New Tooele UT Home
Tooele County Real Estate News From Berna
Lack of Listings Slowing Down Home Sales in Tooele County
Tooele County Buyers and Sellers Know Their Mortgage Lender
Why Didn't You Ask Your Real Estate Agent in Tooele County
Not Enough Good Listings To Buy In Tooele Utah
Tooele County - Four Reasons To Sell Your House This Summer
4 Reasons to Avoid Tooele County Agents That Buy Listings
How To Pick The Right Real Estate Agent in Tooele County UT
Why Tooele County Millennials Choose to Buy
Click here to see ALL articles.