Princeton Town Topics – Let’s Talk Real Estate – November 1, 2017
FED SET TO RAISE RATES: LOCK IN YOUR MORTGAGE NOW
For years, we’ve enjoyed historically low mortgage rates that have made it easier for many people to buy a new home. But finance and economy experts say that when the Federal Reserve meets in December, they’re poised to raise interest rates for the third time this year. That means if you’re planning on buying a home, now is the time to get your finances in order and put in your mortgage application.
You also have a little time to clean up your credit to make sure you get the absolute best rates. Start the process today by requesting your credit reports from all three major bureaus — visit www.annualcreditreport.com to request them for free (once every 12 months). Next, start loan shopping. You can find plenty of websites with mortgage rates listed for major lenders nationwide, but don’t overlook your own personal bank and credit union. Even a half a percent can make a big difference; comparing a $400K mortgage at 4% and 4.5%, that half percent could wind up costing you about $42,000 over 30 years. Once you find a loan you like, lock it in — then get started on the search for your ideal home.