Mortgages backed by Freddie Mac had even lower rates. As of January 17, Freddie’s rates were 3.38% for a 30-year, fixed rate mortgage, and 2.66% for a 15-year mortgage.

The dip in mortgage rates stem from the Federal debt ceiling debate, which spooked the bond market and caused mortgage rates to fall back. For this reason, the super-low rate environment isn’t expected to last.  The financial markets are showing strength overall, and the economy as a whole is making progress. Most economists anticipate that mortgage interest rates will gradually rise during 2013, albeit slowly.

How much difference does the interest rate make in your monthly mortgage payments? Here’s a fast example. About 2 years ago, the average 30-year fixed rate mortgage was at 5.07%. On a $200,000 loan this would have meant a monthly principal and interest payment of $1,082.22.

With the average 30-year fixed rate mortgage now at 3.60%, the monthly P&I payment becomes $909.29. You would save $173 per month on your mortgage payments with the lower rate! You can explore different loan scenarios right our website using the Buyer’s Tools & Resources.

Please keep in mind that mortgage interest rates change daily, and the above rate examples are based on weekly industry averages. Also, the mortgage rate you qualify for will be affected by your credit-worthiness. Columbus home buyers need to have strong credit scores and fall within specific underwriting guidelines in order to obtain the lowest rates.

All said, it is very feasible for Columbus home buyers to obtain a 15-year mortgage, and look forward to mortgage-free living in the future! Imagine being able to retire, or send your kids to college without having a mortgage payment, or monthly rent, to worry about! It’s just one strategy among many that low interest rates allow you to consider.

As your Exclusive Buyer’s Brokerage in the Columbus area, we  continually share information to help our Columbus home buyers! And if you haven’t already done so, please feel welcome to download our free e-book for a wealth of home buying tips and strategies!

If you are buying a home in Columbus, OH, be sure to have professional representation on your side! Our services are free of charge to you, and we will be happy to explain how this works. Contact us for expert home buying guidance!

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

www.BuyersHome.com 
Connect With Me:
Facebook
Twitter

The post Low Mortgage Interest Rates Create Columbus Home Buying Opportunities! appeared first on Columbus Ohio Real Estate | Buyer's Resource Realty Services.

While lending restrictions are gradually loosening, there are still a number of things that you need to do in order to be successful when applying for a mortgage loan. Here are a few things to avoid right after applying in order to ensure a speedy and stress-free loan process:

Don’t deposit large amounts of cash into your bank account. Your lender needs to be able to source and track all of your money as they review your application. Cash is not really traceable. Small deposits that are easily explained are okay, however large cash gifts and their source are not. If you need to deposit a large sum, contact your loan officer and discuss the best way to document it.

Avoid large purchases. Buying things such as a new car or new furniture, however needed they may be, is not wise after applying for a loan. Additional monthly debt payments will take away from your potential mortgage payment. This can take you from being a qualified borrower to a risky one. Prioritize what needs to be purchased and hold off on other large items until after your closing.

Don’t co-sign any additional loans. You are obligated when you put your signature on a loan for someone else, and with that comes higher debt ratios. You become a riskier borrower. Even if you won’t be the one making the monthly payments on that loan, your lender WILL count it against you.

Refrain from changing bank accounts. Remember, your lender needs to be able to easily track all of your assets before you’re approved. In order for this to be done both accurately and quickly, your accounts need to be consistent, and changing bank accounts can complicate things. Even transferring money between accounts can get confusing. Talk to your lender before making decisions about where to place your money.

Don’t apply for new credit. When you have a credit report that has multiple financial channels on it, your FICO score will be affected. Lower credit scores will determine your interest rate and alter your eligibility for approval. Applying for new credit, whether it is for a car or a new new credit card, will affect your score, and that can potentially alter your eligibility for a loan.

Try not to close any credit accounts. There’s a common myth out there that having less available credit for review will make you a less risky borrower, thus bettering your chances for approval. This is inaccurate. A major component of your credit score is length and depth of history. Your total usage of credit is also a factor. Closing a credit account will actually negatively impact your score, as you are negating some of that history that you have built.

Avoiding these common errors after applying for a mortgage on your Columbus, OH home will certainly help the home buyer process move much faster. Obtaining a loan can be a stressful part of the transaction, however if you know which behaviors to avoid and which documents you need for the application, then everything will go much more smoothly. If you have any questions about buying a home on the Columbus, OH real estate market, don’t hesitate to contact me. I’d be happy to help you in any way that I can and put you in touch with some lenders in the Columbus area. I hope to hear from you soon!

Andrew Show
Buyer’s Resource Realty Services
Visit Our Website
Start Your Columbus Home Search
Become Our Facebook Fan
Follow Andrew on Twitter
Connect on LinkedIn

The post What NOT to do After Applying for a Mortgage in Columbus! appeared first on Columbus Ohio Real Estate | Buyer's Resource Realty Services.