You Can’t WebMD Your Mortgage Loan
Confident Workers May Lead To Higher Rates
You had one job!
Said the government 313,,00 times, one for each person newly added to the U.S. workforce.
According to the data from the Bureau of Labor Statistics, a whole stack of new jobs were created last month, raising the total number of new jobs added to the economy to more than 18 million jobs since the start of the decade.
In that same time, the average hourly wage of a worker has increased by almost twenty percent.
And, that’s good news, too.
But, perhaps the most interesting piece of data in this month’s jobs report is the drop in Discouraged Workers.
Discouraged Workers are people who stopped looking for work because they believe no jobs are available for them.
As compared to a year ago, the number of Discouraged Workers is down 29 percent.
This is major for the U.S. economy because it signals confidence in future earnings which leads to an increase in consumer spending that lifts all boats.
For mortgage rates, though, the news is less bullish.
With more workers and more wages comes the threat of inflation, and inflation is linked to higher rates on loans including loans for real estate — mortgages.
So, if you’re planning to buy a home sometime later this year, consider moving up your timeframe. As the U.S economy expands, so might your future payment for a house.
Today’s Mortgage Rates
The truth hurts.
Maybe not as much as jumping on a bicycle with the seat missing, but it hurts.
And, so do today’s mortgage rates if you went under contract for a home this past week and have to lock a rate today.
For all loan types, mortgage rates are higher today.
Conforming loans are higher, FHA loans are higher, and VA and USDA loans, which are almost always the cheapest of the lot, they’re climbing, too. It’s a red day all around.
So, what are today’s mortgage rates?
That’s going to depend on your loan type, your credit score, and the state in which you live. It will also matter whether you’re buying a condo, a 2-unit, a detached home, or something else.
And, whether you plan to live in the home or rent it out to renters.
Rates change all the time so shop quick.
How To Get A Zero-Closing Cost Mortgage
Here we go, yo. So what’s the, what’s the scenario?
For your loan. Because all of them are unique.
And, how your loan scenario is handled is going to affect your interest rate, your monthly payment, and how much house you can afford.
Loan scenarios are serious business and your mortgage lender is there to help you navigate.
We even have a word for this in the mortgage space.
It’s called “Structure”.
The structure of a loan is how it’s put together and a good loan structure will get you the best loan at the best price for what you’re trying to accomplish with the lowest risk to you and your home.
But, here’s the thing: there are dozens of ways to structure a loan.
- There’s 20% down
- The 80/10/10
- The 75/25 for condos
- The Conventional 97
- The Community Second
- The 65/15 in rare cases
There’s also Lender-Paid MI (LPMI), Borrower-Paid MI (BPMI), Single Premium, Split Premium, and these are just conforming loan options.
There are as many ways to put together FHA, VA and USDA loans, too.
And, nevermind if you want to use a down payment assistance program to help you buy that house.
As a home buyer, you can’t be expected to know your optimal loan structure. You only do this a few times in your life and trying to structure yourself is like going to WebMD.
Best to leave it to a professional.
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