Tag: interest rates

Infographic: Loudoun County Real Estate Update

An Infographic about the 2016 Real Estate Market 

Our infographic shows how the Residential Real Estate market stayed strong through the end of 2016. And that carried over into the new year! Despite interest rates rising slightly during the 1st Quarter of 2017, the market stayed steady. Buyers competed against a low inventory of homes on the market through our unseasonably mild winter. As Spring arrived in full force more homes are being listed For Sale.

real estate jsrealty4u market update infographic

As you can see, 6,275 homes were sold in Loudoun County during 2016, which was up 5% over 2015. Single Family homes sold for an average of $609,994. Townhomes sold for an average of $408,173. Again, these were an increase over the previous year. And we expect this upward trend to continue as the market stays strong and steady.

As of April 25th of this year, there were 1,241 homes for sale in Loudoun County. Interest Rates are at the lowest they’ve been all year which makes now a great time to buy and sell Real Estate! Are you interested in getting pre-qualified for a home loan or refinancing a current loan? Contact our trusted friend and Lender, Keith Harris at Intercoastal Mortgage by clicking here or call (703) 259-0788.

The JS Realty Team @ Samson Properties is excited to offer sellers a $7,500* Rebate! Contact our Expert Agents today to learn how we can save you REAL CASH.

*Rebate based on $500,000 sale at 6% commission.

Keith Harris at Intercoastal Mortgage Company
NMLS ID # 838973
Company NMLS ID # 56323
(www.nmlsconsumeraccess.org)
Intercoastal Mortgage Company is an Equal Housing Lender.

Brexit and US Mortgage Rates

The Effect of Brexit on Mortgage Rates in the United States

JS Realty Interest Rates brexitOn June 24, 2016, England voted to leave the European Union. This historic decision, referred to as “Brexit”, has caused a ripple effect here in the United States. It has driven interest rates down to their lowest mark in three years. Mortgage interest rates will fluctuate most directly due to the cost of mortgage backed securities. When mortgage bond prices go up, interest rate tend to fall and when mortgage bond prices drop, mortgage rates will rise. In addition to this correlation, the overall US economy will also influence mortgage rates.

GJS Realty Opposite directions brexitenerally speaking, when the economic indicators such as the stock market, inflation, and unemployment are positive, mortgage interest rates will rise. When the economic indicators suggest our economy is not prospering, rates will drop.

In December of last year, the Federal Reserve projected that it would raise interest rates up to four times in 2016. On June 15, 2016, Federal Reserve Chairperson, Janet Yellen decided NOT to raise rates. This was due to a very weak employment report in May.

Brexit has caused severe volatility in the global stock markets and has had a negative impact on the stock market here in the United States. No one knows what the long term impact of Brexit will be, but it is safe to say that the immediate impact of England’s decision to leave the European Union has directly led to lower interest rates.brexit

If you are considering buying a home, or if you currently have a mortgage and are considering a refinance, right now is a perfect time to get a mortgage loan evaluation from a licensed mortgage professional.

Not sure where to start? Click here to contact Senior Loan Officer Keith Harris or to get pre-qualified.

Keith Harris at Intercoastal Mortgage Company
NMLS ID # 838973
Company NMLS ID # 56323
(www.nmlsconsumeraccess.org)
Intercoastal Mortgage Company is an Equal Housing Lender.

MORTGAGE LOAN REFINANCE

Generally speaking, a loan refinance is a new loan to replace an old loan. Let’s look at the various reasons why a refinance would be appropriate.

JS Realty Business Man Text Save How

LOWER MONTHLY PAYMENTS – If your current interest rate high, refinancing at a lower rate can save you significant money each month. For example, if your loan amount was $300,000 and your rate is 5%, your monthly Principal and Interest (P&I) payment would be $1,633 per month. If you refinance the same $300,000 at a rate of 4%, your monthly P&I payment would be $1,432 or a savings of $201 per month. This equates to a savings of $2,412 per year and will save you $12,060 in five short years!

JS Realty Interest RatesLOWER INTEREST RATES – Interest rates can be lowered due to a change in the industry as a whole, such as the example above. Interest rates can also be lowered by shortening the term of the loan. 15 year rates will be lower than 30 years loans. Adjustable Rate Mortgages (ARM’s) are loans that are fixed for a specific time period such as 3, 5 7 or 10 years and will typically be offered at rates lower than a 30 year fixed loan.

SHORTEN LOAN TERM – A loan refinance can be considered as a way to reduce the length of your loan. Changing from a 30 year loan to a 15 year loan can greatly reduce the number of payments needed to pay off your loan. This is often used by borrower’s who have increased incomes since the beginning of their initial loan and can afford the higher monthly payments.JS Realty Loan Terms Paperwork

CHANGE FROM ‘ARM’ TO FIXED – Adjustable Rate Mortgages are fixed for a period of time and then they begin to adjust or change rates on an annual basis. Refinancing to a fixed rate term alleviates potential rate increases that can occur with the ARM’s.

COMBINE TWO LOANS INTO ONE – When purchasing a home, many borrowers obtain two loans to reduce the amount of down payment or to keep from paying mortgage insurance. As the value of the home increases, a single mortgage can replace both loans at a lower rate than the original two loans.JS Realty Refinance Application Form Pen

ELIMINATE MORTGAGE INSURANCE – Initial loans with a down payment of less than 20% will often have monthly mortgage insurance payments as part of the mortgage payment. Also, FHA loans include monthly mortgage insurance payments that you continue to pay for as long as you own the loan. As the loan balances decrease and property values increase, refinancing into a new loan with a loan-to-value of  at least 80% will eliminate the need for mortgage insurance payments.

CASH OUT –With enough equity in a property, refinancing is a great way to get cash that can be used for virtually any reason.
Some examples may be:JS Realty Refinance Monney Calculator Bills

-Home Renovations/Additions
-Auto purchase
-Boat purchase
-Medical bills
-College Education
-Pay off other debts that carry higher interest rates such as credit cards

If any of these scenarios seem to match your situation, please feel free to contact me to discuss how a mortgage loan refinance can benefit you.

JS Realty Keith Harris
Keith Harris
NMLS # 838973

Keith Harris
Senior Loan Officer
Intercoastal Mortgage Company
Direct: (703) 259-0788
Cell:    (703) 395-6601

 

 

 

 

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The JS Realty Team – not only serving Brambleton, serving all of Northern Virginia.

WHY MORTGAGE RATES CHANGE

What causes changes in mortgage rates? There are any number of reasons for mortgage interest rates to fluctuate and we’ve broken down some of the more common reasons to help you gain a better understanding of this ever-evolving market.

Mortgage Bond Prices:
JS Realty Opposite directionsInterest rates and mortgage bond prices are inversely related. If mortgage bond prices go up, interest rates go down.

Economic Conditions:
Generally speaking, when economic reports/conditions are positive, interest rates will rise. Just this week, the report on retail sales was flat versus the expected .2% increase. This helped keep interest rates down. Last week the jobs report was positive, unemployment was lower than expected and more jobs were added to the economy, which caused interest rates to spike. These are subtle changes that can greatly affect the mortgage industry.

Federal Reserve Building JS RealtyFederal Reserve System:
Janet Yellen, Chair of the Federal Reserve System, plays a large role in the interest rates for the mortgage industry. For a number of years the Federal Government was purchasing large amounts of mortgage backed securities in an effort to keep interest rates low. The Fed monitors the economy and will influence the interest rates to control the economic growth of the US. By decreasing interest rates, the Fed is attempting to spark growth in the economy and encourage borrowing. If the economy is growing, they will use rising rates to control the growth.

Inflation:
Inflation is a prominent economic factor and a key concern for the industry. Inflation increases prices and decreases the spending power in the economy. As inflation rises, interest rates will also rise.

JS Realty Lock Interest RateIn summary, there are many factors that influence mortgage interest rates. All of these factors are outside of our personal control. When it comes time that you need a loan to purchase or refinance a home, you will be faced with making a decision to lock in your interest rate or let the rate “float” in hopes that the market improves and you can get a lower rate. Here is my advice in regards to that decision:  It is much better to be locked in with rates falling than floating with rates rising.

JS Realty KHarris Lender
Keith Harris     NMLS # 838973

Every borrower has a unique need, as far as their loan is concerned. If you have any questions or would like more information, please contact our preferred Lender, Keith Harris at Intercoastal Mortgage Company.

 

 

The JS Realty Team – not only serving Brambleton, serving all of Northern Virginia.