Have you been wondering what the big deal is about interest rates recently?

Mortgage Rates Outlook for 2018

It seems like we keep hearing about interest rates on the rise for this year. Let me share the latest forecast on mortgage rates by James Wood, real estate and economic development research specialist at the University of Utah, found in the February 2018 Salt Lake Realtor Magazine.

Dr Wood reports on several predictions for the 30-year fixed-rate mortgage from some of the largest housing and mortgage groups:

- The Mortgage Bankers Association predicts the rate will rise to 4.6 % in 2018.

- The National Association of Realtors expects the mortgage rate to be around 4.5 percent at year-end.

- Realtor.com believes the mortgage rate will average 4.6 percent over the year but reach 5.0 percent by year-end.

- Freddie Mac's forecast is for 4.6 % by year-end 2018.

- CoreLogic's consensus view from six forecasters has the rate at 4.7 percent in December of 2018.

So there we have it. We can expect mortgage rates just under or at 5 percent as 2018 progresses and that will help preserve favorable housing affordability for another year.

However, if you are planning to purchase a home this year, the sooner you start, the better. You will be able to get a better interest rate earlier in the year. According to Bankrate:

The average 30-year fixed mortgage rate on 1/31/18 was 4.38%

The average 30-year fixed mortgage rate on 2/7/18 was 4.44%.

The average 30-year fixed mortgage rate on 2/14/18 was 4.51%

Here are a few numbers for you to think about.

A super simple, online mortgage calculator tells us that the payment for a 30 year loan for $350,000 at 4.44% would be around $1761. The same calculator tells us that the same loan at 5% would be $1879. That is a $118 difference per month. (These are generalized numbers, a real mortgage lender can give you real numbers for your situation.)

If you are thinking about buying a home this year, give me a call and we can get the process started. We can get you pre-approved and ready to purchase as soon as we find the home you are searching for. 801-631-3430

PS, here is my post about 2017's rates. Pretty close forecast.

Brought to you by Heath Harvey @ HeathsHomes.com

Did you get an Instapot for Christmas?

The USU Extension Service wants to show you how to use your electric pressure cooker to make super easy, fast, delicious and healthy meals for you and your family.

Wednesday, February 14th from 10 to 11:30 am.

55 South 500 East
There is a $2 fee

Brought to you by Heath @ HeathsHomes.com

Friday only, 4 to 8 pm

Take advantage of this great local Valentine's Day sale at FORTY-ONE MAIN in Midway. There will be refreshments and giveaways, including a free heart necklace when you come with a friend.

FORTY-ONE MAIN stocks CoCo + Kiwi bags, CC beanies, all kinds of jewelry, and of course the latest fashion trends at affordable prices.

Brought to you by Heath @ HeathsHomes.com

Keeping it local and making the home buying process simple for you

If you chose to work with two local professionals, Heath and Tom, they will make the home buying and loan process go so smoothly. Here is what will happen:

First, getting prequalified with Tom is a simple task that lets you know exactly what price range to seriously look at in your new home search.

Second, you get to begin your home search with Heath while Tom works on getting you preapproved. A preapproval letter gives you the upper edge when it comes to multiple offers on the same home. It gives you such an advantage over another buyer who hasn't been preapproved. The preapproval letter also lets the seller and their agent know you are capable and able to to purchase the home without any foreseeable hiccups. If your offer is one of a few, your preapproval letter gives you strength in the negotiating.

Third, when you find the home that you love, you and Heath get to put in an offer, negotiate, and eventually sign a contract. You are now 'Under Contract' and it is an exciting time.

Fourth, an inspection of the home will be ordered and completed. If there is anything in the home that needs to be repaired or if there is any structural damage, this is now addressed. There is a magic period of time during the 'Under Contract' time frame called DUE DILIGENCE. The due diligence process allows you to do your research on the home and property. During this time, the inspection is completed and you get to research anything and everything about the home to make sure it is exactly what you want and all of the property is in order. If there are repairs to be made, Heath and the seller's agent will work out who will take care of the needed repairs. The due diligence period protects you because if there are concerns, you can renegotiate your offer or completely withdraw your offer without penalty. A final walk through will be completed by you and Heath to make sure all agreed upon terms have been met.

Fifth, a loan application will be completed. Tom will help you figure out which loan is the best fit for you.

Sixth, an appraisal on the property will be arranged by Tom. An appraisal lets you and Tom know if you are paying a fair price for your home. If the appraisal comes back lower than your current offer price, negotiations will resume with the seller and usually the price of the home will be lowered. That means Heath will be able to get a better home price for you.

Seventh, processing and underwriting your loan takes time. Tom takes care of all of this while you get to start packing.

Eighth, a closing disclosure will be sent to you from Tom that sums up your loan.

Ninth, the disclosure leads to your final loan approval. Tom and Heath have been busy taking care of necessary paperwork and making arrangements with the title company to finish up your loan.

Tenth, signing your loan documents and closing your home purchase is the last part of the process that gets you into your new home. Heath will attend the closing with you and make sure everything is in order. It usually takes a few days for your loan to fund and the paperwork to be recorded. Once the seller receives their payment, the home is yours and you get to move in.

Brought to you by Heath @ HeathsHomes.com