Ok, so yes it is Monday, unfailingly it is the first day of the work week, every week. As a co worker of mine stated, it gets a bad rap being that it is the first day back to work for most of us. Being a mortgage agent however, I work the dreaded 24/7 – so Monday is just another day, except when school is in, I get to look forward to some quiet work time… so Mondays for me are not that bad really. I have learned to “shake it off”.. Monday could be the first day closer to Friday, which no matter if you work 24/7 or not, is still the best day… we have been programed to think this. How about this thought; do you think your dog cares what day it is? … Nope. Live each day to its fullest.. that is what they do. It is a page from my four legged friends book, that I will take advice from today. Hope you do to.
Now onto some interesting news that I know is out there already in regards to rate hikes. Yes they happened, yes they went up, a lot more than we have seen in the last couple of changes. However contrary to the general consensus, they are not terrible and super high. You can still get a 5 year fixed at 3.29%! or get the cost certainty on a 10 year fixed at 3.99%. The Variable rates are coming back as a strong alternative as well – if you qualify at the 5.14% posted rate. Lenders still have great incentives on the transfer/switch programs, and HELOCS at Prime + 0.5% you can not ask for better. We all knew that rates were going to rise, they always do come July – every time with out fail. If you missed out on the 2.79% boat, I can understand your frustration, however look at it this way – On a $400,000 requested Mortgage Amount that is $1850/month approximate mortgage payment at the old rate….with the new 3.29% the approximate mortgage payment is $1950/month. That is about a $100 difference between rates – now while this is not a small number to scoff at, it breaks down to about $25/week. If you are worried because now you will not be able to “afford” the home or become “house poor” – this is a mortgage amount you should not be looking at in the first place. Think of it. What would you do in 5 years when your term is up; life has usually changed maybe you had a baby and now only have one income coming in, maybe someone has lost a job, maybe you did not get the raise you were banking on, or you just went business for self/contracting, or you just had to spend money on a new furnace, shingles etc – and now at renewal rates are back to the high 4% or even early 5% range (which is where we were before all these super low rates came into play).. that is an increase in your payment of about $300-600 per month – can you afford that? If you are that worried about rates in regards to your final payment for what ever payment frequency you want – then you should be seriously looking at the 10 year rate. If you really like the low rate numbers, maybe now look at the variable rate – you get a low rate in regards to Prime, and it qualifies at the posted rate – which currently at the 5.14% rate, you can be more certain you will be ok come renewal time in regards to payments etc.
So ” Shake It Off “ – those Monday and rate increase blues. They are both not terrible things and there are indeed options out there and different ways to put together the same puzzle picture. You never know, maybe this Monday will be the best day for you ever – you may talk to an amazing mortgage agent about your mortgage options (wink wink) and have them tailored just for you. Finally having peace of mind in regards to your mortgage future. The glass can always be half full, even if today it is half full of rain. Happy Monday!