Are You Worried About Mortgage Rates? Please Don't!
Fous on "Controlling the Controllables"
You’ve probably been hearing a lot about mortgage rates lately, right? 🏡 You might’ve seen some headlines about the Federal Reserve (the Fed) meeting last week and wondered what it means for rates. But here’s the scoop: the Fed doesn’t actually set mortgage rates, even if it sounds like they do. 😅
Mortgage rates are influenced by so many factors: geo-political uncertainty, inflation, the economy, and more. 🌍📉 Trying to predict when all these factors will line up for rates to drop is super tricky. That’s why trying to time the market isn’t really worth it. There’s too much going on that you simply cannot control. 🤷🏻♀️
So, what can you do? Control what you can. 💪🏽 Here’s how you can make your moving plans a reality despite the rates:
**Your Credit Score** 📈
Your credit score plays a big role in your mortgage rate. As CNET explains:
“You can’t control the economic factors influencing interest rates. But you can get the best rate for your situation, and improving your credit score is the right place to start. Lenders look at your credit score to decide whether to approve you for a loan and at what interest rate. A higher credit score can help you secure a lower interest rate, maybe even better than the average.”
So, it’s super important to keep your credit score in good shape right now. Want to improve it? Your trusted loan officer can give you some expert tips. 💡
**Your Loan Type** 🏦
There are lots of different loans out there, each with its own terms. The Consumer Financial Protection Bureau (CFPB) says:
“There are several broad categories of mortgage loans, such as conventional, FHA, USDA, and VA loans. Lenders decide which products to offer, and loan types have different eligibility requirements. Rates can be significantly different depending on what loan type you choose.”
When you’re working with our real estate team we will recommend 3 lenders. Talk to each lender to make sure it's a great fit and to explore what’s available for your situation. The first step is always seeing which loans you qualify for. 🕵️♀️ What's best for you.
**Your Loan Term** ⏳
Another thing to think about is the term of your loan. Just like with loan types, you’ve got options. Freddie Mac says:
“When choosing the right home loan for you, it’s important to consider the loan term, which is the length of time it will take you to repay your loan before you fully own your home. Your loan term will affect your interest rate, monthly payment, and the total amount of interest you will pay over the life of the loan.”
Depending on your situation, the length of your loan can also impact your mortgage rate.
**Bottom Line** ✨
You can’t control what happens in the economy, but you can control the controllables. Work with a trusted lender to figure out what you can do to make a difference. By being strategic with these factors, you might be able to tackle today’s higher rates and lock in the best one you can. 👍
Please reach out so we can start that conversation and make your dreams a reality 🙌🏼
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