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2015-11-02 06:33:54
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

Federal Reserve moves toward raising interest rate for first ...


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) ...

Read more ...

Stunning report: Feds may not raise interest rates at all in 2015


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 ...

Read more ...

2015 Interest Rate Forecast and Best Rates Today ...


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 ...

Read more ...

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.




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