Rent Vs Buy

With seasons changing maybe you are considering a change?
Should you continue to rent a home in 2017 or is it time to buy? There are a variety of factors that go into the decision, but here's a big one: Historically low mortgage rates.

Generally, the more time you plan to live in a home, the more sense it makes to buy. If you have just moved to a community, renting — at least initially — may be a better option as you get to know different neighborhoods. Another factor: Your job. How stable is your employment? Buying could make more sense right now if you aren’t thinking about switching jobs, your employer is not reducing its workforce or if your company isn’t planning to move you to a different city or state.

Another way to evaluate the rent-versus-buy decision: The U.S. Breakeven Horizon, compiled by real estate website Zillow.com. This analysis is designed to provide an estimated number of years one needs to live in a home for buying to make more sense than renting. Factors such as expected growth in rents and home values, price-to-rent ratios and mortgage interest rates are included in the analysis. Nationally, that figure is 1 year and 11 months. For a look at the Breakeven Horizon in the area you are thinking of buying, go to this link.

While a variety of factors may sway the buy-versus-rent decision, there’s one that’s tipping the scales toward buying a home in a big way: Historically low mortgage rates. Take a look at average mortgage rates since 1971 and you’ll see that today’s rates are extremely favorable. Low mortgage rates help families stretch their home buying dollars. Questions about whether buying a home is the right choice for you and your family? We’re here to help.

Five Questions Everyone Should Ask Their Mortgage Lender

 

Five questions everyone should ask their mortgage lender...

 

 

How long have you been in business and how long have you been specializing in residential home loans?

 

Sierra Pacific Mortgage has been specializing in residential home loans for over 30 years.

 

 

Do you process, underwrite, and fund your own loans?

 

Sierra Pacific Mortgage and our experienced staff will handle all aspects of your mortgage loan from origination through closing. This means less red tape, fewer documentation requests and much faster loan closing times!

 

 

Do you service your own loans?

 

In the mortgage business, when someone states they “service” loans, that means the same company that provided your loan, manages your mortgage payments. This is also an indication of stability and financial resources. Sierra Pacific Mortgage services many of their loans, making Sierra Pacific among the largest private lenders in the nation.

 

 

How technology savvy are you?

 

Sierra Pacific Mortgage has won several technology awards and allows customers to submit, view and sign many of the required documents electronically, which saves time and makes the home loan process more efficient.

 

 

How many locations do you have?

 

Sierra Pacific Mortgage maintains a national footprint with over 130 offices and is licensed in 49 states, so you can work directly with a loan officer who is familiar with your area!

USDA Home Loans - 100% Financing

Fannie Mae Loan Limits 2017

Opportunities are Short Lived

On Wednesday, September 21, 2016 “The Fed” met to discuss interest rates once again. As you know, there has been talk about raising interest rates since the economy outlook is reportedly doing a little better. You can view the article here (http://money.cnn.com/2016/09/21/news/economy/federal-reserve-september-meeting/)

 

The real estate market has been raising, which means home values have been increasing around the country as well. This may be your last chance this year to pull cash out of your home for home improvements, pay off deft, or just plain lower your current interest rate or term of your loan.

 

Start your loan now and close by November 30th and have no house payment for December. Now that's a great way to end the year.

The Week Ahead

THE WEEK AHEAD This week, New Home Sales will be released on Monday. Durable Orders, an important indicator of economic activity, will come out Wednesday. Pending Home Sales and the third estimate of second quarter GDP will be released Thursday. The Core PCE price index, the Fed's preferred inflation indicator, will come out on Friday.

MON 09/26 TUE 09/27 WED 09/28 THURS 09/29 FRI 09/30 New Home Sales   Durable Orders   Core PCE

Investors Liked What the Fed's Said?

Investors liked what the Fed said—or didn't say—following last Wednesday's meeting. Both stocks and bonds reacted favorably; meanwhile, the economic data had little impact. As a result, mortgage rates ended the week lower. 

As expected by most investors, the Fed did not raise the federal funds rate. The Fed explained in its post-meeting statement that the case for a rate hike “has strengthened,” but Fed officials decided to wait for “further evidence of continued progress toward its objectives.” Notably, Fed officials remain divided about the appropriate timing to tighten monetary policy. In a rare occurrence, three out of ten voting Fed members dissented from the decision because they wanted a rate hike to take place at this meeting. Conversely, three Fed officials indicated in their forecasts that they do not see a need to raise rates at all this year. Investors were pleased that the Fed did not come out more strongly in favor of tighter monetary policy, and mortgage rates improved following the meeting. 

The housing data released over the past week was mixed. After reaching a multi-year high this summer, sales of previously owned homes in August declined for the second straight month. According to the National Association of Realtors, low levels of inventory are holding back home sales in many regions. Inventories of homes for sale declined 3% from July and were 10% lower than a year ago. 

There are signs that building activity for single-family homes may pick up in coming months, however. In August, building permits for single-family homes increased 3.7% from July, which was the largest monthly increase since June 2014. In addition, the NAHB home builder confidence index jumped to 65 in September, which matched the highest reading since 2005.

John Easterbrook

NMLS# 226555

Mortgage Loan Officer

806 Bidwell Street

Folsom, CA 95630

p - 916.850.6050

c - 916.224.7653

f - 866.370.9735

John.Easterbrook@spmc.com