Buying or refinancing a home is a big decision and one that shouldn’t be entered into without plenty of thought, foresight, and a little advice from people who know the industry thoroughly. Here, the experts at TexasLending.com weigh in on mortgage trends for 2016.
Q: Is it cheaper to buy a home or rent?
TexasLending.com: That really depends on where you live, and the state of the market at the time you are planning to move. Currently, it’s less expensive to buy a home and make monthly mortgage payments than it is to lease in most major markets across the US. The average rent for a two bedroom apartment in Dallas is close to $1,500 a month. By comparison, a mortgage of $200,000 may be less than $1,000. (Hint: check out TexasLending.com for calculators).
Q: What factors affect mortgage rates?
TexasLending.com: Mortgage rates are determined using a number of variables. These include the local and national economy, employment rates, housing market, inflation, area growth, and supply and demand. Individually, rates may vary depending on down payment, loan term, and credit history.
Q: How are mortgage rates projected to change through year’s end?
TexasLending.com: According to Fannie Mae and the Mortgage Bankers Association, there is a good chance that rates will rise slightly through the fall and winter. However, even the experts can’t always accurately predict the future. All we know at the moment is that interest rates are low and demand is high.
Q: What’s the best way to obtain a low mortgage rate?
TexasLending.com: Be ready to pounce when rates drop where you want them. It’s also a good idea to forge a relationship with a lender ahead of time who can work with you throughout the process and assist you in making a more informed decision. Our website lists current mortgage rates, which change daily, so you may want to keep that bookmarked on your computers at home and at work.
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