The mortgage industry has seen significant changes over the last quarter of 2016. Since mortgage rates have started to rise since November, homebuyers can expect an interest rate of more than 4% on the popular 30-year fixed rate mortgages. This means that while buying a home is still worthwhile, the process is affected by slowly rising interest rates. And for those who want to refinance, it can be a little more expensive than refinancing last year. Nonetheless, opportunities like cash-out refinancing or shortening the loan term could be beneficial depending on your situation.
Whether you’re planning to buy a home or refinance your current homenloan, you need to recognize your opportunities to make the most of your investment. An expert wealth management advisor from AOG Wealth Management can help you with that. Consider these tips:
- Make a Small Down Payment – If providing a 20% down payment for a mortgage is out of your reach, it is possible to make a smaller down payment. As a matter of fact, some loan programs allow people to buy homes with no down payment at all. Other loan programs require only as small as 3% down payment.
- Set Aside Reserves – It’s not ideal for you and for mortgage lenders to deplete your savings on the down payment and closing costs. As an experienced wealth management company, we recommend keeping some savings in reserve so you can take care of unexpected expenses without missing house payments.
- Consider Refinancing into a 15-Year Loan – It’s possible for shorter loan terms to help you save money in two ways. For one, 15-year mortgages usually have lower interest rates than 30-year loans. In addition, you’re paying interest over a shorter period. While the monthly payments on 15-year loans tend to be higher than a 30-year mortgage, the total interest paid over the life of the loan can be smaller. Check with a financial advisor to see if a shorter mortgage term matches with your financial goals.
- Make Sure You Can Afford What You’re Borrowing – Ultimately, your decision to buy a home should depend on whether or not you can afford it. You can use tools, such as a mortgage affordability calculator, to help you determine how much you can pay for a new home.
AOG Wealth Management is the leading company for a wide range of financial management services, including investment management and home mortgage assistance. Our experts can help you obtain a mortgage. We serve many areas across Northern Virginia and Washington, DC, including Ashburn, Arlington, Great Falls and McLean.
Talk to our experts now by calling us at (866) 993-0203 or by completing our form. We look forward to helping you!
The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.