A VA Loan helps service members, veterans and eligible surviving spouses become Columbia SC homeowners. It does this by providing a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a Columbia SC home for your own personal occupancy.
The Columbia SC home you're considering must undergo a VA appraisal and meet VA Minimum Property Requirements (MPRs) which provide general acceptability criteria for properties to ensure veterans are moving into a safe, sound and sanitary home.
This video explains why a VA Loan is different from a conventional mortgage, and why you should choose a VA Loan if you're qualified.
Call us for a no-obligation consultation on how a VA Loan could help you get into a Columbia SC home if you're qualified, and if the home you're considering qualifies. Get more details on the VA Loan process here.
By now, unless you've been living in a closet for the past few weeks, you already know that mortgage rates have been inching up.
If history is any indication, the recent spike in mortgage rates is going to have little to no impact on home prices, according to a new report from Fannie Mae.
Whether you're planning to buy or sell a Columbia SC home, here's what you need to know about rising mortgage rates.
Mortgage Rates Are Still Pretty Cheap
If the economy continues to improve as anticipated, mortgage rates will keep inching up. We're not expecting to see rates climb back above 5 or 6 percent again until at least 2014, but with mortgage rates, a lot of things factor in to set the rates. But even at 5 percent, historically speaking, rates are still pretty cheap. Anyone remember the days of 21 percent mortgages?
Higher Mortgage Rates Won't Cripple Housing
Mortgage rates would have to rise fairly sharply to make a dent in the Columbia SC housing market. With prices rising, sellers can be patient. For buyers, as we said, mortgages are still historically cheap.
Mark Zandi, chief economist for Moody's Analytics, examined more than 20 years of mortgage rates and home price data and found that, on average, for every percentage point increase in mortgage rates, the pace at which home prices grew was lowered by half a percentage point.
Be Ready To Lock In Your Rate
To avoid any short-term spikes, it is recommended that you lock in as soon as you can (typically when you sign a contract to buy a Columbia SC home).
Most lenders won't charge for a 45-or 60-day rate lock. Pay for a 90- or 120-day lock only if you think your deal may take a while to close. The typical cost is a quarter of a point per 30 days. With a float-down option, you'll pay less when rates fall at least a quarter point. Skip that add-on unless it's free.
Fixed Mortgage Rates Usually Beat Adjustables
You may be eyeing adjustables, which are up less than fixed rate loans. An ARM is the better call only if you plan to own your Columbia SC home for a short time.
When you need five or less years, you might save with an adjustable rate. A monthly payment on a $200,000 mortgage is $954.00 (principal and interest only) with a 30-year loan at 4%. On a 5-year ARM at 2.6 percent, you're looking at $800 and some change. But it's crucial to get a loan that matches your time frame.
When we sit down and discuss your Columbia SC home buying options, we'll go over mortgage rates with you and help you decide which type of loan is right for your particular situation. We can also help you find a mortgage expert in the Columbia SC area to discuss your options with as well.
Mortgage rates are on the rise, and home buyers are trying to get in before they go higher. In the Columbia SC area, rising mortgage rates and low inventory are combining to drive up prices and turn things into a seller's market. CBS's Anthony Mason reports…
Potential Columbia SC home buyers need to be vigilant in their home search, but also need to remember not to fall in love with any home before you own it, or you just might end up paying more for the home than it's worth.
Using an Exclusive Buyer's Broker is the only way you can be sure of getting the best possible deal on any Columbia SC area real estate.
Rising mortgage rates of late are giving scare to would-be homebuyers. Rates that were sitting at historic lows a few weeks ago are now skyrocketing upward. A tick down here and there in between jumps, but overall, those record low rates seem to be history now.
We've been seeing a slow and steady recovery according to analysts, and now rising mortgage rates may cause the economy to backfire. Matt Markham explains in this report…
What do you think? Will rising mortgage rates cause a backfire in the economy, or are rising mortgage rates actually good for the economy? We'd love to hear your opinion. Just chime in using the comment box below.
The days of record low Columbia SC mortgage rates have apparently come to an end as fixed-mortgage rates hover around 4%. And while there are many saying that rising rates won't hurt the housing market, others are more concerned.
Many analysts seem to agree that if Columbia SC mortgage rates rise much more above where they are now, affordability could begin to take a toll. This is especially true with first time home buyers and investors, which combined, make up a large part of the home buying market these days.
Speed of Rising Columbia SC Mortgage Rates the Biggest Concern
Fannie Mae Chief Economist Doug Duncan said the concern should be less about what the rates have risen to and more about the speed at which they are rising.
Duncan noted that in 1994, for instance, rates rose 2% over a 12-month period, resulting in a huge impact on home prices, which fell significantly.
"If the rise happens rapidly, it tends to have an impact," said Duncan, who added that once Columbia SC mortgage rates rise 100 basis points, home sales may begin to slow.
As far as first-time homebuyers go, Duncan said it all depends on how high the mortgage costs go. "It's all about the size of the mortgage that they're going to try to take on relative to their financial strength," said Duncan.
Overall, first-time homebuyers are making up about 30% of total buyers, said Duncan.
High investor activity is making up the difference, he added. "If investors fell off, would first-time buyers be bigger?" asked Duncan.
A lot lies on that very important "if," according to Duncan. If investors start to back out, you'll likely see prices flatten out.
"We do believe there is going to be a slow down," said Duncan.
But Duncan added, "We're not up to the average long run mortgage rate that the economy has seen over all those years." From World War II to today, the average 30-year fixed-rate mortgage is about 6.5%, according to Duncan, who noted, "People have forgotten that there were mortgage rates at the 14% and 15% range for awhile."
Even though Columbia SC mortgage rates have risen pretty quickly and significantly, they were from a very low level — the lowest level since World War II — so we're not even close to the average 30-year fixed-rate mortgage rate. The greater concern overall is not the level of the Columbia SC mortgage rates, but the speed at which they rise.