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Best Mortgage Tips for May 2018

May 3rd, 2018 8:29 AM by Jackie A. Graves, President

Eager spring homebuyers may think they need to act fast in order to successfully buy a home. But even as supply remains low and mortgage rates move higher, there’s one reason to remain patient.

Here are our best mortgage tips for May.

1. Prepare your finances to buy in June

Consider putting a pause on buying. Instead, spend this month doing research and getting your finances in order.

In an analysis of 14.7 million home sales from 2011 to 2017, ATTOM Data Solutions found that home prices in May fetched the highest premiums above estimated market value. On average, sellers got about 5.9 percent more than in any other month.

So, instead of looking to buy in May, homebuyers can use this month to ready their finances. This means checking your credit score, shopping around for the best rates, applying for financial assistance mortgage programs and getting to know your local market.

2. Earn points, miles when you buy a new home

After navigating the homebuying process, you’ll most likely want to take a vacation. Luckily, some lenders offer miles and points to credit card holders who get a home loan.

Until Aug. 31, for example, Chase members with Ultimate Rewards or United personal credit cards will rack up Ultimate Rewards points as a thank you for choosing Chase.

Seven Chase cards are eligible for this bonus, each with varying degrees of value. Chase Sapphire Reserve cardholders are eligible for 75,000 Ultimate Rewards points, a $1,575 value, according to The Points Guy.

3. Refinance before rates rise even higher

As rates rise, people with existing mortgages should consider refinancing now if they can lock in a lower rate. Mortgage rates are expected to continue moving higher, so the window to save on monthly mortgage payments is closing.

“We expect rates to rise through the end of the year, to almost 5 percent by the end of the year,” says Joel Kan, an economist with the Mortgage Bankers Association. “In a rising rate environment, the people who need to refinance should do it now.”

However, when it comes to refinancing, there’s more to consider than the interest rate. Here’s what else you should consider before refinancing your mortgage.

To view the original article click here             Apply to Buy a Home             Apply to Refinance


Posted by Jackie A. Graves, President on May 3rd, 2018 8:29 AM


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