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10 06, 2016

Mortgage Rates Update

June 10th, 2016|Blog, Latest News|

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Unfortunately May brought a disappointing jobs report for the U.S. and a speech by the Federal Reserve Chair Janet Yellen that seemed to take a June rate hike by the Fed’s rate-setting committee off the table, for now. This created a worrisome week for the U.S economy which led to lower rates for home loans.

Here is where the mortgage rates stand this week:

  • The benchmark 30-year fixed-rate mortgage fell to 3.74% from 3.81%. The rate this week is 0.23 percentage points lower than the 52-week average.
  • The benchmark 15-year fixed-rate mortgage fell to 3% from 3.05%.
  • The benchmark 5/1 adjustable-rate mortgage fell to 3.13% from 3.22%.
  • The benchmark 30-year fixed-rate jumbo mortgage fell to 3.71% from 3.76%.

Timing of Fed hike is less clear

As a result of the speech on Monday, the timing of when the Federal Reserve will decide to raise rates is still not clear. Yellen said the Fed would probably need to raise the federal funds rate gradually over time. That appeared to retract what was said in the speech 3 days earlier in which she said it would probably be appropriate to raise the funds rate “in a couple months”. The Federal Reserve will raise rates after our current uncertainties unfold.

If you want to apply to either buy or refinance, start the application today! https://www.myloanform.com/?action=access.login&m=47

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 […]

4 07, 2015

What is TRID and How Does it Apply to My Loan?

July 4th, 2015|Blog, Buying a home, Home Finances, Latest News|

 

iStock_000058510168_LargeIn the world of finance there seem to be a lot of acronyms because, well, let’s face it, it would take much longer to go through paperwork if having to use the long versions! Just because we use the acronyms and understand what they all mean, doesn’t mean we expect you to as well! After all, you have enough stuff to remember in your personal life instead of wondering what TILA and RESPA mean. Thank goodness you are in good hands when you come to First Ohio. We fill you in on every detail and explain all of those acronyms to you and what they mean!

One of the acronyms in home finance industry that you may have heard about is TRID or the TILA RESPA Integrated Disclosure Rule. Breaking it down further it means, Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). Have we lost you yet? Stay with us! Now you see why the simple TRID works just fine when discussing this. As you can see it is essentially consolidates four existing disclosures into two new disclosure forms known as the Loan Estimate (LE) and the Closing Disclosure (CD). The current documents have been around for about 40 years and it is time that they are made more current!

The first new disclosure form is the the Loan Estimate, or LE form, which contains details such as the loan term and projected payment must be put in the mail and sent to the consumers who apply for mortgages no later than the third business day after receiving their application. An application is triggered when the lender receives six key pieces of information,

  • Consumer’s name
  • Consumer’s income
  • Consumers SSN (to obtain a credit report)
  • Property address
  • Estimated property value
  • Loan amount

If the consumer wishes to proceed […]

16 06, 2015

First Ohio Home Finance is BBB Approved!

June 16th, 2015|Blog, Latest News|

Check out this video from the Better Business Bureau highlighting First Ohio Home Finance! We are so proud to continue to serve our customers with outstanding service year after year! Thank you to all of our past and current customers. We greatly appreciate you!

5 03, 2014

4 Reasons to Buy a Home Now

March 5th, 2014|Blog, Buying a home, General, Latest News|

buy-a-home If you’ve been on the fence about buying a new home, now is the perfect time to take the plunge and find that dream home you’ve always wanted. Here are a few reasons why you should consider purchasing a home sooner rather than later:


1. Interests rates are rising
Experts predict that mortgages rates will steadily rise in 2014, and continue to rise well into 2015. An increase in interest rates could also mean an increased monthly payment on your mortgage, so it may make sense to buy this year before rates get even higher.


2. Home prices are on an upward swing
Home prices are expected to rise slowly in 2014, and if the economy continues to rebound, prices will rise more steeply after 2014. So this year may be the perfect time to purchase a home. Buyers also have to consider how rising home prices may affect their ability to purchase a home if they wait.  Higher House Prices = a need for a larger Down Payment and Higher Monthly Mortgage Payments


3. New mortgage qualifying rules protect borrowers
New mortgage rules went into effect in the U.S. on January 10, 2014. These rules were created to help ensure that when borrowers are financed for a mortgage, they will be able to pay back the loan. Even though some people argue that it’s harder to get a loan, the new rules make it the most secure time to get a mortgage.


4. Fewer buyers means less competition
Sellers want to sell quickly, but many people are delaying buying until later in the year. This is ideal because there won’t be as many buyers vying for the same house. Sellers may be more willing to negotiate in order to keep your interest and improve their chances of making […]

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