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Higher Mortgage Rates?

Higher Mortgage Rates In 2013?

The news that renters and home buyers do not want to hear is that 2013 will almost certainly see higher housing costs, higher rents and various mortgage fees.

This year also sees the introduction of several new mortgage regulations, and anyone applying for a mortgage will potentially be affected by these.

English: Sign of the times - Foreclosure — English: Sign of the times – Foreclosure (Photo credit: Wikipedia)

If you apply for a FHA mortgage and have a lower down payment, you will have higher rates for your mortgage insurance.

In an ongoing effort to add to its reserves, the FHA (Federal Housing Administration) has implemented various raises to insurance premium costs since 2008, and analysts seem to think that trend will continue. One such increase will be a 0.1 percent increase in the yearly insurance premium that is added to the monthly mortgage payment of borrowers. Currently, the charge for FHA borrowers is about 1.25 percent.

Janneke Ratcliffe of UNC Chapel Hill in North Carolina points out that once rates rise, this seemingly small increase will be noticeable.

Rental prices are rising due to a poor job market, a high number of foreclosures and tight mortgage lending, and in addition, the supply of rentals is low in many areas. Real estate firm Reis pointed out that in the 4th quarter of 2012, apartment vacancies stood at 4.5 percent, an 11 year low.

Whereas earlier refinancing options have not worked effectively, President Obama is likely to push for more effective legislation to help owners with an ‘underwater’ property, predict some analysts, including Julia Gordon of the Center for American Progress.

Consumers could be affected for better or worse when a series of new mortgage regulations are introduced early this year. One of the most important is a rule stipulating that a borrower must prove to a lender that they are financially able to pay back the loan.

Mortgage rates usually go up when investors move from Treasury bonds and mortgages to stocks, and this week was no exception. A 30 year fixed mortgage increased to 3.77 percent, while a 15 year fixed increased to 3.03 percent and a 5/1 adjustable rate mortgage increased to 2.78 percent.

A Successful Retirement Portfolio Depends On You

In these uncertain economic times, how do you plan for a successful retirement? Step 1 is to educate yourself, Step 2 is to have a plan, and Step 3 is to constantly review your plan. Educating yourself is a must, and there are of course financial planners out there to help, but it is your financial future that is on the line. Therefore, it is just smart to know at minimum the basics. You must also remember that the financial world changes constantly, which is why it is so important that you are always reviewing your plan. Lets take a look at some potential investments that you may consider when building your portfolio.

REIT (Real Estate Investment Trust)
So what is a REIT and why is it a possible addition to your portfolio? The U.S. law states that REITs pay out 90% of their taxable income to fund shareholders. There are three varying kinds of REITs, the Equity REIT, the Mortgage REIT, and a combination called the Hybrid REIT. The Equity REIT is one in which the owner invests in and and owns properties, therefore the profits gained from this type of REIT is mainly from the rents collected on the properties owned. The Mortgage REIT is one in which the owner invests in the property mortgages, meaning they loan the money needed to the owners of real estate, or they purchase existing mortgages. The profits earned on Mortgage REITs comes from the interest earned on the mortgage loans. Finally, the Hybrid REIT is when the owner has a combination of Equity and Mortgage REITs. So how do you invest in a REIT? If you are interested in becoming a REIT you can purchase a mutual fund that specializes in real estate or you can purchase directly from an open exchange.
Precious Metals IRA
With the ever decreasing value of the dollar and fluctuating stock market many people are taking a look at the precious metal IRA as a way to diversify their retirement portfolios. As with any investment, there are no guarantees, but many financial planners believe that a precious metals investment has a certain level of safety in a rocky economic environment. The price of precious metals has shown a past trend which is diametric of the stock market. Gold is a good investment primarily due to the fact that it is not dependent on the performance of anything else in which to gain value. Physical gold ownership is a considerable investment when looking at an IRA savings standpoint.
The Importance of Choice
Though the stock market has been a bit inconsistent as of lately, it has been the advice of many analysts that when choosing to invest a wise choice is to go with tried and true performers. Regardless of which options you decide to invest in when building your portfolio, it is key that you are making informed decisions and not just allowing someone else to choose for you, after all this is your future, and only you can decide what is right for you.

Fran Delaney, the author of this article, is a financial writer from Los Angeles, CA.

More on Gold IRAs (intervogs.com)
How to Choose Your IRA CD Investment (2010tax.org)

A Reverse Mortgage Loan Is a Major Decision That Might Involve Family

Did you ever get the feeling that maybe you should rethink your position just before a deal is closed, then later regret not acting on the feeling? If you have, you experienced what people in sales refer to as a “moment of objective clarity.” You are referred to as a mook once you leave and your money is securely in their hands. A mook is a person who subconsciously knows that they are being taken for a ride but cannot pinpoint why and therefore sign the deal and leave happy on the outside and wondering on the inside. Being a mook is caused by a lack of complete research on the buyer’s part and can be avoided.

Prepare a Contrasting List

If you are considering a reverse mortgage loan, you might want to stop and take a good long look at the reverse mortgages pros and cons before you proceed. Pros and cons refers to a list that you could make that has the positive and negative sides to each point of anything, whether it be the advantages or reverse mortgage disadvantages. This type of life changing decision warrants a good long look.

Getting What We Wish For

A reverse mortgage is an important step in your retired life that could be the answer to a prayer. We all wish that we will have a comfortable retirement t look forward to but sometimes, you get what you wish for and that could come back and bite you or your heirs if you do not have a firm understanding of the reverse mortgages disadvantages. Understanding what is good about a reverse mortgage is easy.

Avoid Being a Mook

The Internet is the perfect place to start your search into a reverse mortgages pros and cons. Have a pencil and paper at the ready when you conduct your search and dust off that printer. Knowing all the facts is what it is all about. Discuss your pros and cons list with any family that has a stake in your decision and be especially prepared with the reverse mortgage disadvantages. You know that they will want to know about that. Don’t be a mook. Do your research.

Pros And Cons Related To How Does A Reverse Mortgage Work (debt-consolidation-2u.com)
No Doc Mortgage Basics (debt-consolidation-2u.com)

Tag: Mortgage loan

Higher Mortgage Rates?

Higher Mortgage Rates In 2013?

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A Successful Retirement Portfolio Depends On You

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A Reverse Mortgage Loan Is a Major Decision That Might Involve Family

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Higher Mortgage Rates In 2013?

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