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Category: Mortgage



December 20, 2019

How to Shop for Mortgage Rates

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Source: https://www.zillow.com/refinance/tx/#/location

How to Find the Best Mortgage Rates

Mortgage rates can change daily, and can vary widely depending on the borrower’s personal situation. The difference can mean tens of thousands of dollars over the life of the loan. Here are some tactics to help you find the best mortgage rate for your new home loan.

  1. Shop Around

    Many homeowners opt to refinance with the lender who they initially got their mortgage from, but that doesn’t always get them the lowest rate for their new home loan. To get the best rate for your refinance, try comparing offers from several different lenders.

  2. Compare Fees

    The mortgage rate isn’t the only factor when it comes to the cost of your refinance. To find the best rate, compare each lender’s fees and closing costs to fully assess the cost of the home loan. You’ll also want to compare the total cost of the new loan to make sure the costs don’t outweigh the savings.

  3. Improve Your Credit Score

    Before refinancing your mortgage, it’s best get your credit score and get it in the best shape possible because your credit score is one of the biggest factors that affects the mortgage rate that you’ll be offered by lenders. A higher credit score will get you a lower interest rate for your home loan. Learn more about how to improve your credit score.

  4. Consider Your Loan Program

    Adjustable rate mortgage (ARM) and fixed rate home loans with shorter terms offer lower rates than the ever-popular 30-year fixed loan. If you can budget the higher monthly payment of the 15-year fixed or 10-year fixed loan, or if you’re comfortable with the possibility of your rate changing with the ARM, these options could help you get a better refinance rate for your home loan and pay much less interest over time.

December 8, 2017

Homebuying Doesn’t Hinge on the Mortgage Tax Break

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One of America’s most popular tax breaks is about to be rendered nearly useless. And there are few economists rushing to defend it.

The $64 billion mortgage-interest deduction has long been touted as fuel for U.S. homeownership. Yet as the real estate industry fights the Republican tax plan that’s set to diminish its use, finding economic supporters of the perk is tough, even among affordable-housing advocates. John Weicher, a 79-year-old former official with the Department of Housing and Urban Development, says he’s one of the few who believes in the break.

“We’re about as common in the economics profession as Republicans are in the District of Columbia,” said Weicher, now director of the right-leaning Hudson Institute’s housing center in Washington, a city where only about 4 percent of voters chose President Donald Trump in last year’s election.

While Republican lawmakers aren’t directly killing the mortgage benefit, their tax plan would make it worthless for most homeowners by doubling the federal standard deduction, making it less likely that a typical person would itemize write-offs of any kind. Almost 38 million American households who would otherwise itemize would opt for the standard deduction under the new tax plan, according to Moody’s Analytics Inc.

The bill’s passage would be one of the greatest defeats for the National Association of Realtors, Washington’s second-most powerful lobbying group, which had for decades successfully fended off criticism of the benefit. Detractors argue that the tax perk inflates home prices for first-time buyers and favors families with bigger incomes and bigger mortgages (including for discretionary vacation-home purchases).

It’s “not an effective way to support homeownership,” Mark Zandi, chief economist for Moody’s Analytics, said of the mortgage-interest deduction, or MID. “I think my views on the MID are in the consensus.”