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Worried About Interest Rates Rising? Here's How You Can Prepare for an Upward Trend Whether you are just starting to shop for a new home or you’ve been paying off your mortgage for years, the news of potential interest rate increases may be worrying. Of course, interest rates naturally cycle higher and lower over time, so is there anything to be genuinely concerned about? In today’s article, we’ll explore interest rates and how you can prepare for an upward trend in rates if and when the time comes.

Speak With Your Mortgage Advisor First

If you already have a mortgage, the first step would be to speak with your lender to discuss what’s coming in regards to interest rates. If you are locked into a “fixed” rate, check and see how long you have left before this needs to be adjusted. If you are on a floating or adjustable rate, you may be able to lock that in for a few years.

If you do not already have a mortgage advisor or if you want a second opinion, we can help. Get in touch with us at your convenience.

Refinance When The Time Is Right

It is always a good idea to understand when the best time to refinance your mortgage might be. In short, refinancing refers to the process of swapping out your current mortgage loan for a new one. Your new mortgage pays off your old mortgage, and you continue forward paying down the new loan. This is typically done when interest rates are on the way down, but refinancing applies to many home owners at different times. Have an honest discussion with your lender to determine if refinancing is right for you.

Start Tucking Aside Extra Cash

Finally, if you are truly concerned that you may have to spend a bit more to cover your monthly mortgage payment in the future, it’s best to start saving now. Put aside an extra $25 or $50 each month into a savings account where it can stay until you need to use it. The upside is that, if you don’t need it, you’ll have a nice nest egg which can be invested or added to your retirement savings.

Aside from preparing yourself financially, there is little else you can do about the direction of mortgage interest rates. To learn more about rate trends or to discuss how they might impact your mortgage, contact us today. We’re happy to share our experience and insight to help you make the best decision.

You Ask, We Answer: What Are the Fees and Costs That Come Along With a Mortgage? Have you been considering a mortgage for your next home purchase? As with any loan or financial product, there are a variety of fees and costs you may incur in the process of closing your mortgage. In today’s post, we’ll explore a few of these potential fees and the situations in which you may encounter them. Let’s get started!

Title Insurance Costs

You’re almost certainly going to incur insurance fees and charges. In most cases, you’ll need to pay for title insurance for the lender, which is based on the purchase price of the home but varies from state to state. This protects the lender if something is missed during the title search, which shows whether or not there are any liens on the property.

Mortgage Underwriting Fees

Depending on the lender, you may or may not be assessed an underwriting fee. When you apply for a mortgage, there’s an intense amount of research required to determine the types of mortgage products that you qualify for and the amount of financing you can afford. This fee covers the costs involved in conducting this research. This may also be referred to as the ‘origination fee’ or included within it.

The Closing Fee

As mentioned above, there are title costs associated with finalizing your home purchase. As the name suggests, the closing fee covers the cost of having a representative from the title company present at the final ‘closing’ of the deal. This professional supervises the formal legal transfer of the home from the previous owner to you.

Legal And Attorney’s Fees

Speaking of legal, in most states you will require an attorney for some part of the closing process. This may or may not be related to the mortgage financing itself. For example, in some states, you will need to have an attorney present when you finalize the mortgage paperwork. In others, you’ll only need them for other parts of the purchase transaction.

Other Miscellaneous Costs

Finally, there are a handful of less common fees and costs that you might incur. These range from courier fees to get documents moved around the city to bank and wire fees to transfer your down payment.

While the list above may look like a lot, in the grand scheme of your total mortgage cost you won’t even notice most of these fees. For more information about mortgage fees or to apply for financing, contact our friendly team of mortgage professionals today. We’re happy to help.

Worried About Interest Rates Rising? Here’s How You Can Prepare for an Upward Trend

You Ask, We Answer: What Are the Fees and Costs That Come Along With a Mortgage?

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