Volatility in the financial markets has kept mortgage rates in check, even though the Federal Reserve has nudged up the benchmark rate twice in recent months. Here’s a snapshot of where rates are hovering:

• 30-year fixed-rate mortgages with a point of 0.5 are averaging 3.89%
• 15-year fixed-rate mortgages with a point of 0.5 are averaging 3.16%.

A “point” is pre-paid interest, and basically allows you to buy down your interest rate. One point is equal to 1% of your mortgage balance. On a $200,000 mortgage, one point would cost $2,000. Points are optional, and whether or not it’s worth paying them depends on your personal financial situation; but with interest rates this low it typically is not a good idea!

Please keep in mind that the above rates are examples of weekly industry averages, and interest rates may change several times daily, or not at all for many days. Your actual mortgage interest rate depends on the financial markets, your credit score, and your overall creditworthiness.

Another bit of good news for home buyers: Fannie Mae will change its debt-to-income requirements for new mortgages as of July 29, 2017. This applies to the “back-end” ratio of the DTI calculations, meaning that your income, monthly debt obligations and new mortgage payment are all considered. The new allowed DTI ratio will be 50%, an increase from 45%.

What this means, is that Conventional mortgages are becoming more competitive with FHA mortgages, which already allow higher DTI ratios. This expands comparable mortgage choices for home buyers, and improves your opportunities for mortgage qualification.

When you are ready to speak to a mortgage lender, contact Buyer’s Resource Realty Services first! We will refer you to local, trusthworthy lenders who take the time to explain all of your options, while offering very competitive rates and low closing costs. And when you become our Buyer-Client, we’ll help you analyze your mortgage offers and explain how they affect your home buying power.

As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

The post Mortgage Market News Encouraging for Columbus Home Buyers appeared first on Columbus Ohio Real Estate | Buyer's Resource Realty Services.

The challenges facing first-time home buyers in Central Ohio are shared among buyers nationwide. Statistics show that first-time buyers currently represent about 28% of the buyer market, which is considerably lower than the historical average of 40%. However, entry-level home purchases remain robust due to investor activity.

Home builders have also seen a decline in first-time home buyers. A recent report from the National Association of Home Builders notes that first-time buyers are challenged by stagnant wages, despite an improving economy. Stringent credit requirements, coupled with declining home affordability, remain concerns for Columbus home buyers across the board.

Fortunately, there is help available for first-time Columbus home buyers:

The Ohio Housing Finance Agency offers down payment assistance, closing cost assistance, and special grants to first-time home buyers throughout Ohio.

Closer to home, the City of Columbus “American Dream Downpayment Initiative Program” offers forgivable loans to low and moderate-income home buyers.

Franklin County offers financial assistance to qualifying first-time buyers, and to buyers who have not owned a home during the past 3 years.

There are home buying strategies you can employ:

1. Know your mortgage options. In addition to exploring home buying assistance programs, do smart comparisons between FHA-backed mortgages and conventional loans. The cost of mortgage insurance can affect your home affordability. See our blog post about down payment thresholds and mortgage insurance for more details.
2. Use professional buyer representation. An Exclusive Buyer’s Broker provides you with critical advantages – and there is no charge to you.
3. Be flexible about your requirements. While a 4-bedroom home may be ideal, a 3-bedroom home could prove more affordable. Sort out the must-haves from the wish list.
4. Be willing to cast your net wider. Location is a crucial decision when buying a home; however, you may find that your money buys more in an adjacent community.

Columbus Home Buying Guidance

At Buyer’s Resource Realty Services, we provide each of our buyer-clients with a 119-page Educated Buyer Notebook. This comprehensive guide contains valuable facts and advice on a variety of home buying topics. It’s yours free of charge when you select us as your professional representatives.

As your Exclusive Buyer’s Broker, we serve your best interests at all times. Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your Columbus home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

The post Real Estate Strategies for First-time Columbus Home Buyers appeared first on Columbus Ohio Real Estate | Buyer's Resource Realty Services.