Monthly Archives: December 2015

//December
22 12, 2015

Interest rates are going up, what does this mean for home buyers?

December 22nd, 2015|Blog, Buying a home, Latest News, Mortgage 101, Tips & Advice|

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The Federal Reserve raised interest rates last Wednesday for the first time in nearly a decade, meaning that the U.S. economy has overcome the wounds of the 2007-2009 financial downfalls. The U.S central bank’s policy-setting committee raised its benchmark interest rate from a range of 0-0.25 percent to a range of 0.25-0.50 percent, ending a lengthy debate about whether the economy could withstand higher borrowing costs.

It is still unsure what the long-term effects of this change will be but for now we can speculate on what this will mean for home buyers:

  • The feds have been signaling that interest rates will be raising very slowly, which will probably have very little effect on mortgages and saving accounts.
  • Mortgage lenders have already been working the increase into today’s mortgage rates because an increase has been approaching for some time.
  • Real estate agents and home builders do not feel there is a sense of urgency for home buyers to purchase before the rates go up, buyers should take the time needed to make good decisions.
  • With that said, if buying a home is on the horizon, it does not hurt to pay attention to these changes.

In the United States right now the average mortgage interest rate is 3.95%. Most experts do not think mortgages rates will go much higher than 4% anytime soon. Even an increase to 4.5% would only add about $700 a year to the monthly payments for a $200,000 home. The early indications are that rates barely budged after the announcement by the Federal Reserve last week.

Buying a home can seem like an overwhelming process but do not let this recent news about interest rates scare you away. Have a personal timeline for when you want to have certain steps in the process accomplished and […]

15 12, 2015

5901 Torrey Pines Ave Westerville, OH 43082

December 15th, 2015|Just Financed|

Gorgeous Highland Lakes home on almost an acre, ravine ,wooded lot. Very open foyer, open greatroom looking over a wall of windows, back staircase, fully finished lower level, Corian kitchen with natural maple cabinetry, paver patio and much more. Sitting room off master, a HUGE walk in closet with island dresser. Gorgeous sunroom off kitchen with views of wooded lot, lots of hardwood, office, raised brick hearth fireplace.

 

  • Lot: 0.95 acres
  • Single Family
  • Built in 1998
  • All time views: 2,587
  • Cooling: Central
  • Heating: Forced air
  • Last sold: Aug 2015 for $415,000
  • Last sale price/sqft: $109

 

15 12, 2015

3715 Rushmore Dr., Upper Arlington, OH

December 15th, 2015|Just Financed|

This is a Single-Family Home located at 3715 Rushmore Drive, Upper Arlington, OH. 3715 Rushmore Dr has 4 beds, 3 ½ baths, and approximately 3,431 square feet. The property has a lot size of 1 and was built in 1958. 3715 Rushmore Dr is in the Orchard View neighborhood in Upper Arlington, OH. The average list price for Orchard View is $440,116.

  • Single Family Residential
  • 1 Partial Bathroom
  • Built In 1958
  • Heating
  • Exterior Walls: Masonry
  • 1 Building
  • Fireplace
  • Tax Rate Code Area: 070
  • 4 Bedrooms
  • 3,431 sqft
  • Stories: 1 story with basement
  • Parking: Garage
  • 8 Rooms
  • Basement: Partial Basement
  • Subdivision: ORCHARD VIEW ADDITION EXTENSION NO 1
  • 3 Bathrooms
  • Lot Size: 0.71 acres
  • A/C: Central
  • Parking Spaces: 3
  • 1 Unit
  • Foundation: Crawl/Raised
  • County: Franklin
14 12, 2015

Is an ARM right for you?

December 14th, 2015|Blog, Home Finances, Mortgage 101, Tips & Advice|

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When it comes to buying a home and obtaining a mortgage, everyone’s situation is unique. Housing needs and personal finances vary greatly, so it’s important for every home buyer to understand the types of mortgages that are available.

Adjustable Rate Mortgages, or ARMs, generally offer a lower initial interest rate than conventional 30-year fixed rate mortgages. However, after the introductory period, the rate will increase at specific intervals until it reaches a capped amount. Because ARM terms can vary substantially, borrowers should understand several concepts that apply to this type of loan:

  • Frequency of the interest rate adjustments
  • Interest rate Adjustment Indexes
  • Interest rate caps for each adjustment interval
  • Interest rate ceiling over the life of the loan

Mortgage lenders are an important information source for home buyers and prospective borrowers should keep asking questions until they thoroughly understand their options.

So, is an Adjustable Rate Mortgage right for you? Here are several factors to consider:

  • How large of a mortgage payment can you afford today?
  • Could you still afford your monthly payment if interest rates rise significantly?
  • How long do you intend to live in the home? If you plan on living in the house for only a few years, the lower rate ARM might make good sense.
  • What direction are interest rates heading?

Interest rates have been very low for many years. However, the Federal Reserve has given indications that rates will rise in the future. Higher interest rates along with rising home prices can make ARMs a viable option that helps many buyers purchase the home they need.

If you would like to learn more about Adjustable Rate Mortgages – and whether an ARM is the best solution for your needs – contact First Ohio Home Finance today. We’ll be happy to answer any questions you may have. You can also […]

3 12, 2015

“Know Before You Owe” – TRID revisited

December 3rd, 2015|Blog, Home Finances|

FirstOhio-blog12.3.15

The new TRID regulations for mortgage loans, also known as the Consumer Financial Protection Bureau’s “Know Before You Owe” initiative, took effect on October 3. It is too early to know for certain how TRID will affect the length of the closing process. But since the new regulations are officially in play, now is a good time to review what “Know Before You Owe” means to you as a borrower.

In a nutshell, “Know Before You Owe” was developed to simplify loan disclosure information, provide transparency and help borrowers better understand the mortgage lending process. The formal name of the program is “TILA-RESPA Integrated Disclosures” or TRID. Basically, TRID combines four federal disclosure forms that have been used for many years into two much simpler documents. The Initial Truth in Lending document, the Final Truth in Lending document, the Good Faith Estimate and HUD-1 have been superseded by the Loan Estimate and the Closing Disclosure.

You will receive a Loan Estimate from each potential lender within three days of providing them with basic information. The Loan Estimate will break out the Loan Terms, Projected Monthly Payments, and Estimated Closing Costs including loan costs and cash needed to close. The Loan Estimate also provides data that you can use to quickly compare one loan offer against another.

You will also receive a Closing Disclosure at least three days before your scheduled closing. This document essentially mirrors the information contained in the Loan Estimate but in final detail. It also includes a summary of both Borrower and Seller transactions. The Closing Disclosure gives you the opportunity to carefully check all the details and question anything that appears different. The three day window is your time to ask any and every question that comes to mind. Take advantage […]

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