Making the Dream of Owning a Home a Reality
In the face of soaring home prices, which have risen by an eye-opening 87.6% from 2018 to 2022 in Utah, Davis County is taking a stand to support its residents. With wages only increasing by about 11% statewide, the disparity between income and the cost of housing has made homeownership an elusive dream for many low to moderate-income families. This is why Davis County’s Community and Economic Development has launched an innovative Homeownership Assistance program aimed at bridging this gap.

A Helping Hand Up to $50,000
The program offers a one-time homeownership assistance loan of up to $50,000 to help reduce the primary mortgage needed, thereby making monthly payments more affordable. This loan carries a minimal 1% interest and is repayable to the County when the home is eventually sold, with no payments required during the life of the loan.

Empowering Through Education and Support
Prospective homeowners must complete a HUD-approved homeownership class, such as the one offered by Utah State University online, to ensure they are well-prepared for the responsibilities of owning a home. In addition, the property in question must meet certain eligibility requirements, including being located within Davis County and not displacing current tenants.

Income and Property Eligibility
Eligible applicants must have an income at or below 80% of the Area Median Income (AMI) as defined by HUD. For instance, a family of four must earn no more than $85,100 annually to qualify. The program also stipulates that the purchase price of the home cannot exceed $500,000 and the property must be the buyer’s primary residence.

A Fair and Accessible Process
The Davis County Homeownership Program operates on a first-come, first-qualified basis with no waiting lists. A $1,000 contribution from the borrower is required, and the applicant must be pre-qualified by a reputable lender. The program is firmly rooted in fair housing practices, ensuring equal opportunity for all residents of Davis County without discrimination.

Ready to Apply?
To apply, please reach out directly to our office at 801-820-7620. Our team will guide you through the application process and help determine your eligibility.

In Conclusion
With a comprehensive approach that includes financial assistance, education, and adherence to fair housing laws, Davis County is not just providing a down payment assistance program—it’s nurturing a community where the American dream of homeownership becomes a widespread reality.

Contact our office today to take the first step towards your new home in Davis County.

Introduction

Welcome to the world of mortgage rates, where numbers can make or break your home-buying dreams! With mortgage rates on the move, it’s crucial for potential homebuyers to understand when these rates might go down. That’s where we come in! In this article, we’ll explore the latest predictions on when mortgage rates will go down and how it could impact your decision-making process.

Get ready to dive into factors that influence mortgage rates, such as the Federal Reserve’s actions and the benchmark range. We’ll also gather expert opinions and discuss their reliability. Lastly, we’ll talk about timing your purchase and choosing the right loan type for you.

So, without further ado, let’s embark on this journey to discover when those elusive mortgage rates may finally take a dip!

Factors Affecting Mortgage Rates

Craving a crystal ball to predict mortgage rates? It’s not that simple. Several factors influence the current mortgage interest rate, and understanding these factors can help you make informed decisions when purchasing or refinancing your home.

The Mighty Federal Reserve: The central bank of the United States, also known as the Fed, plays a crucial role in determining mortgage rates. While the Fed doesn’t directly set mortgage rates, its actions and policies have a significant impact on the direction of rates.

Benchmark Range: The Federal Reserve sets a benchmark range for short-term interest rates. This range influences other interest rates, including mortgage rates. When the benchmark rate goes up or down, it affects the cost of borrowing for banks, which in turn impacts the interest rates they offer to customers.

Economic Conditions: A variety of economic factors can sway mortgage rates. Inflation, unemployment levels, and global economic events all contribute to fluctuations in interest rates. For example, during times of economic uncertainty or crisis (such as the COVID-19 pandemic), mortgage rates may drop as investors flock to safer investments like bonds.

So what does this mean for you? Mortgage rate movements are difficult to predict because they’re influenced by:

• The Federal Reserve’s actions

• Benchmark range shifts

• Current economic conditions

By keeping an eye on these factors and staying informed, you’ll be better equipped to navigate the ever-changing world of mortgage rates. Stay tuned for more insights on how expert opinions and predictions can shed light on when mortgage rates might finally go down!

Federal Reserve Actions

The Federal Reserve plays a significant role in determining mortgage rates, as their decisions directly influence the cost of borrowing. When the economy is expected to cool, the Fed may lower interest rates to encourage borrowing and stimulate growth. On the flip side, if inflation is on the rise, they might increase rates to avoid overheating the economy.

Economic outlook can also impact mortgage rates significantly. A strong economy typically leads to higher interest rates, while a sluggish one generally results in lower rates. As the economic climate shifts, so too will mortgage rates. With that in mind, keep a close eye on the Fed’s actions and the overall economic landscape to anticipate potential changes in mortgage rates. This way, you’ll be better prepared to make informed home-buying decisions when the time is right.

Benchmark Range and Interest Rates

Benchmark range: The magic key to understanding interest rates. Banks and lenders use this range as a reference when setting their own interest rates for loans, including mortgages. The higher the benchmark range, the higher mortgage rates climb, and vice versa.

Mortgage rate today: Currently, mortgage rates are experiencing an uptick according to recent trends. What does this mean for borrowers? A higher mortgage rate translates into increased monthly payments and a larger chunk of your budget dedicated to housing expenses.

So, if you’re considering jumping into the home-buying pool, it’s crucial to keep an eye on that pesky benchmark range and stay updated with current mortgage rate trends. Knowledge is power – especially when it comes to securing your dream home!

Expert Opinions and Predictions

With mortgage rates constantly changing, it’s essential to know what the experts think about future trends. A review of various opinions can provide valuable insights into when rates may decline.

What Do the Experts Say?

Here’s a compilation of expert predictions on mortgage rate trends:

1. Fannie Mae: They anticipate a slight decrease in 30-year fixed mortgage rates throughout 2023, reaching 6.3% by year-end[^1^].

2. Freddie Mac: Similar to Fannie Mae, they predict a gradual climb in mortgage rates, with the 30-year fixed rate hovering around 6.2% by the end of 2023[^2^].

3. Mortgage Bankers Association (MBA): The MBA forecasts that the average 30-year fixed-rate mortgage will reach 5.8% in Q4 of 2023[^3^].

Factors Experts Consider

Experts base their mortgage rates forecast on several factors, including:

• Federal Reserve actions

• Inflation trends

• Economic growth

• Geopolitical events

• Housing market conditions

It’s important to remember that these predictions are not set in stone and can change as new data becomes available.

Are These Predictions Reliable?

While experts have access to extensive data and use sophisticated models to make their forecasts, predicting future mortgage rates is not an exact science. Unforeseen global events or changes in economic policies can dramatically impact interest rates.

That said, staying informed about expert opinions can help you make more educated decisions when navigating the housing market.

[^1^]: Fannie Mae – Economic & Housing Outlook [^2^]: Freddie Mac – Quarterly Forecast [^3^]: Mortgage Bankers Association – Mortgage Finance Forecast

Impact of Federal Reserve Rate Hikes

When it comes to Federal Reserve rate hikes, they play a crucial role in influencing mortgage rates. Here’s the deal: as the Fed increases its benchmark rate, borrowing costs for banks rise, and this trickles down to impact mortgage interest rates. Consequently, higher rates make it more expensive for homebuyers to borrow money for their dream homes.

Now let’s dive into the impact on the housing market and homebuyers:

 

• Home prices may stagnate or even decrease as potential buyers hold off on purchasing, hoping for lower mortgage rates in the future.

• Homeowners looking to refinance might face higher costs, discouraging them from doing so.

• An increase in mortgage rates can also affect affordability, especially for first-time homebuyers with tight budgets.

In a nutshell, Federal Reserve rate hikes can lead to higher mortgage rates, affecting both the housing market and homebuyers’ choices. Keeping an eye on Fed rate decisions is essential when trying to time your home purchase or refinance.

Economic Outlook and Mortgage Rates

It’s no secret that the economic outlook plays a significant role in mortgage rates, and the pandemic has had its fair share of impact. Let’s dive into how these factors interconnect:

• Pandemic’s effect on mortgage rates: The uncertainty brought on by the pandemic led to lower mortgage rates as investors sought safer investments, like government bonds. Consequently, this increased demand for bonds pushed down their yields, which directly affects mortgage rates.

• Refinancing options: Low mortgage rates create an enticing opportunity for homeowners to refinance their current mortgages. Refinancing can lower monthly payments and save homeowners money over the life of their loans.

• Home prices: A strong economic outlook usually means higher home prices, which can influence mortgage rates. As home prices increase, lenders may charge higher interest rates to offset the potential risk of borrowers defaulting on their mortgages.

In short, the economic outlook is undeniably intertwined with mortgage rates. Staying informed about current events and trends can help you make more educated decisions regarding your home purchase or refinance.

Timing Your Purchase

Ah, the age-old question: when is the perfect time to buy a home? Timing your purchase can be crucial, as mortgage rates play a significant role in determining the overall cost of homeownership. But how do you know if you should take the plunge now or wait for rates to potentially go down? Let’s dive into some key considerations.

The Risk of Waiting Too Long

While it might be tempting to hold out for an elusive drop in mortgage rates, waiting too long can come with its own set of risks. For instance, home prices could continue to rise, negating any potential savings from lower interest rates. Additionally, mortgage rates could potentially increase further, leaving you with even higher costs in the long run.

Strategies for a Better Deal

If you’ve decided that now is the right time to buy a home but are concerned about current mortgage rates, fear not! There are several strategies you can employ to secure a better deal on your home purchase:

• Improve your credit score: A higher credit score can lead to more favorable loan terms and lower interest rates. Take steps to improve your credit by paying down debt and ensuring timely payment of bills.

• Consider adjustable-rate mortgages (ARMs): ARMs typically have lower initial interest rates compared to fixed-rate mortgages; however, they come with the risk of rate increases over time.

• Negotiate: Don’t be afraid to ask for concessions from the seller.

By carefully considering these factors and employing some savvy strategies, you can make an informed decision about timing your purchase in relation to mortgage rates – without feeling like you’re playing a risky game of “wait and see.” Stay tuned as we explore different loan types available to homebuyers and how they can impact your decision-making process.

Home-Buying Loan Types

When diving into the home-buying process, it’s essential to understand the various home-buying loan types available. Let’s compare some popular options:

 

• Low Down Payment Mortgages: These loans require a small down payment, making it easier for first-time buyers with limited savings.

• Conventional Loans: A popular choice backed by private lenders, requiring a higher down payment but offering more flexibility.

• VA Loans: Designed for veterans and military personnel, these loans offer competitive rates and 100% financing.

• FHA Loans: Insured by the Federal Housing Administration, requiring lower down payments and catering to borrowers with lower credit scores.

• USDA Loans: Aimed at promoting rural development, these loans provide 100% financing for eligible properties in designated rural areas.

To choose the right loan type based on current rates, consider factors like your credit score, down payment capacity, and eligibility criteria. Knowledge is power—equip yourself with information to make the best decision for your financial future!

Conclusion

Key Points Recap:

 

• Factors affecting mortgage rates: Federal Reserve actions and the benchmark range

• Expert opinions on when mortgage interest rates may drop

• Timing your home purchase and exploring various loan types

It’s impossible to predict with absolute certainty when mortgage rates will go down. However, staying informed about economic trends and expert opinions can help you make an educated guess. Don’t forget that timing is crucial in the home-buying process, as waiting too long for rates to drop might backfire if prices keep rising.

Instead of stressing over when mortgage interest rates will drop, focus on understanding the factors that influence them. Keep an eye on the Federal Reserve’s decisions, monitor the benchmark range, and stay updated on the economic outlook. Most importantly, be proactive and ready to seize opportunities when favorable rates emerge. Your dream home is within reach if you stay informed and make smart choices!

When shopping for a mortgage, you may have come across the terms “fixed rate” and “adjustable rate.” But what’s the difference, and which one is the best option for you? Here’s a breakdown of the pros and cons of fixed and adjustable interest rate mortgages to help you make an informed decision.

Fixed Interest Rate Mortgages

With a fixed interest rate mortgage, the interest rate remains the same throughout the entire term of the loan. This means that your monthly mortgage payments will also remain the same.

Pros:

Predictability: With a fixed interest rate mortgage, you know exactly what your monthly mortgage payments will be for the entire term of the loan. This can make budgeting easier and can provide peace of mind.
Stability: Because the interest rate is fixed, you don’t have to worry about it going up and increasing your monthly mortgage payments. This can be especially important if you’re on a tight budget.
Cons:

Higher interest rates: In general, fixed interest rate mortgages have higher interest rates than adjustable rate mortgages. This means that you may end up paying more in interest over the life of the loan.
Inflexibility: If interest rates drop significantly after you take out a fixed interest rate mortgage, you may be stuck with a higher rate than what’s currently available.

Adjustable Interest Rate Mortgages
An adjustable interest rate mortgage, also known as a variable rate mortgage, has an interest rate that can change over time. The interest rate is typically fixed for a certain number of years (such as 5, 7, or 10) and then adjusts periodically based on market conditions.

Pros:

Lower interest rates: Adjustable interest rate mortgages often have lower interest rates than fixed rate mortgages, at least initially. This means that you may be able to get a lower monthly mortgage payment in the short-term.
Flexibility: If interest rates drop significantly after you take out an adjustable interest rate mortgage, your monthly mortgage payments could go down.
Cons:

Uncertainty: With an adjustable interest rate mortgage, you don’t know exactly what your monthly mortgage payments will be in the future. This can make budgeting more difficult and can create uncertainty.
Risk of rising interest rates: If interest rates go up after you take out an adjustable interest rate mortgage, your monthly mortgage payments could increase significantly. This can be especially risky if you’re on a tight budget.

Which is Right for You?
Ultimately, the decision between a fixed and adjustable interest rate mortgage will depend on your personal situation and financial goals. If you value predictability and stability, a fixed interest rate mortgage may be the right choice for you. On the other hand, if you’re willing to take on a bit more risk in exchange for potentially lower monthly mortgage payments, an adjustable interest rate mortgage may be worth considering.

Before making a decision, it’s important to carefully consider your financial situation and to speak with a mortgage lender or financial advisor. They can help you weigh the pros and cons of each type of mortgage and determine which option is the best fit for you.

Confused about Down Payment Assistance Programs? We can help! We have helped many people find and apply for the perfect down payment assistance program. Most people need help with down payment and closing costs when purchasing their first home. Down Payment Assistance mixed with the right First-Time Homebuyer Program can make homeownership attainable and affordable.

Layton City – First Time Homebuyer Assistance

Many First-Time homebuyers are unaware of the down payment assistance programs that are available to them on both a city and county level in Utah. We specialize in helping first-time homebuyers apply and obtain down payment assistance.

Layton City has a program called At Home in Layton. The funds are available from a grant agreement with Layton city and HUD. There are a few things to know when applying for down payment assistance. We will go over them below.

Things To Know When Applying for Down Payment Assistance

You must have household income under the required annual limits based on family size
What documentation is required to apply?
How much grant money will I receive?
Do I have to pay the money back?
How do I apply?
What are the income requirements?

Income requirements are based on the applicant’s gross household income. It must be below the 80% Area Median Family income for the Ogden-Clearfield, UT area has determined by HUD.

1 Person Family – $56,300
2 Person Family -$64,350
3 Person Family – $72,400
4 Person Family – $80,400
5 Person Family – $86,850
6 Person Family – $93,300
7 Person Family – $99,700
8 Person Family – $106,150
Source – https://www.huduser.gov/portal/datasets/il/il2022/2022summary.odn

Required Documentation to Apply

Pre-approval letter from a Lender – We can help you with this part
Most recent year income tax returns from all household members
2 most recent months pay stubs from all working household members
A completed Real Estate Purchase Contract (REPC) showing your offer has been accepted
How Much Grant Money Will I Receive?

You can get up to $10,000 to go towards 50% of your down payment, closing costs, or even a principal reduction of your loan amount.
Do I Have to Pay the Money Back?

As long as you live in the home for 5 years, the home will be totally forgiven. If you sell the home before the 5 year period, you will be required to pay back a portion of the grant depending on how long you lived at the home.
If you refinance before the 5 years are up, you will need to subordinate the grant as part of your refinance.
How Do I Apply?

We would be happy to help you apply. Since the documentation required for your home loan is similar to the grant, we can help you apply and help you submit the required documentation to Layton City.

Uncover the facts about reverse mortgages. Here’s a quick look at the most common reverse mortgage myths and the truths behind these misconceptions.

MYTH #1: THE LENDER WILL OWN MY HOME IF I GET A REVERSE MORTGAGE.

Truth: Definitely not true! As with any other home loan, as long as you meet the requirements of the reverse mortgage, you retain ownership and title not the lender.*

MYTH #2: I DON’T OWN MY HOME FREE AND CLEAR, SO I CAN’T GET A REVERSE MORTGAGE.

Truth: A reverse mortgage converts a portion of your home equity into cash. Even if you have an existing home loan, you could qualify for a reverse mortgage with enough equity in your home.

MYTH #3: A REVERSE MORTGAGE HAS HUGE OUT-OF-POCKET COSTS.

Truth: Many reverse mortgage costs and fees are the same as those that come with traditional home loan. You’ll know all your costs in advance so there are no surprises at closing. Plus, most fees can be rolled into your new mortgage, further limiting your out-of-pocket expenses.

MYTH #4: THERE ARE LIMITS ON HOW I CAN SPEND THE MONEY FROM A REVERSE MORTGAGE.

Truth: You can use reverse mortgage proceeds to pay down debts, cover medical expenses or home improvement costs, boost your retirement reserves, or pay for everyday essentials. The possibilities are endless!

MYTH #5: 1 CAN’T LEAVE MY HOME TO MY CHILDREN OR HEIRS.

Truth: You can still bequeath your home according to your wishes. The title will pass to your children or heirs, and they decide how to repay the reverse mortgage loan.

MYTH #6: A REVERSE MORTGAGE SHOULD BE MY LAST RESORT.

Truth: Not so! Today’s reverse mortgages can be helpful to a variety of eligible homeowners aged 62 and up. As with any major financial decision, consider your current needs and overall goals and seek professional guidance. Speaking with an established, licensed loan officer can help you decide if a reverse mortgage is right for you.

WHAT IS A REVERSE MORTGAGE?

This is a type of loan that converts some of your home equity into cash. Unlike a traditional mortgage, you don’t need to make monthly payments to pay
back a reverse mortgage. * Because you don’t have to own your home free and clear to qualify, a portion of the reverse mortgage proceeds will be
to used to repay any existing mortgage(s) on your home at closing. Interest and fees are added to the reverse loan
balance over time. The balance is due once you no longer occupy the home as your primary residence.

HOW DO I DECIDE IF A REVERSE MORTGAGE IS RIGHT FOR ME?

Speaking with a licensed loan officer is great first step! Our team is approved to originate
reverse mortgages, so you can count on us to help you make a well-informed decision. You’ll
learn about options that fit your financing needs and get clear, complete answers to all your questions.
To help you get reverse mortgage ready, keep reading for a quick overview on the process.

INDEPENDENT COUNSELING:

The U.S. Department of Housing and Urban Development (HUD) requires reverse
mortgage borrowers to meet with an approved independent counselor. Plan on spending
about 60 to 90 minutes with your independent counselor over the phone or, if required by
your state, in person. You can search for an approved counselor online on HUD’s website
(https://entp.hud.gov/idapp/html/hecm_agency_look.cfm) or by calling (800) 569-4287.

APPLICATION:

Our team will help you complete your loan application. We’ll give you a detailed list of
supporting documentation you’ll need to provide. As with any mortgage loan, you may
be asked to submit more info or paperworkafter the application stage.

CONTACT US TODAY FOR MORE INFORMATION. WE ARE READY TO HELP!

801-820-7620

Here is a top ten list of questions you should ask before buying a home
1. What is my budget? We mean total budget, not just the sales price. Remember to include property taxes, insurance, any HOA fees, renovations costs and ongoing maintenance.
2. Did I get preapproved? Most realtors want to see that your pre-approved (many won’t even talk to you until you are!). So get preapproved to show you mean business. And we can help! Contact us today for a preapproval letter!
3. Why is the seller moving? This can be useful in seeing how motivated the seller is and can help in negotiating the price.
4. What comes with the sale? Make sure you get in writing what is included in advanced – the washing machine, stove, blinds etc.
5. Is it in a flood or natural disaster area? Make sure you know if its in a FEMA flood zone or other disaster coverage you may need.
6. What is the going rate for houses in the neighborhood? Look at housing prices of other homes sold in the area to get a feel for prices
7. How long has the house been on the market? If its been sitting on the market for a while, that can strengthen your negotiating position
8. How about the neighbors? This is doubly important if you’re moving into an HOA, make sure you do your own intel on this. Talk to neighbors, drive around and see for yourself.
9. How’s the home’s health? Make sure you get a thorough inspection and have any issues with the house identified in advanced and also get a history of renovations.
10. How’s the neighborhood? Lastly make sure you check out the neighborhood too! Make sure to check the local schools, crime rates, what activities are available nearby and if you’re going to have a commute make sure you to check the drive time too!

In the last few years many people began working remotely and interest in second homes has skyrocketed. Here is a primer for those considering a second home.
The first step is where – do you want a vacation home by the beach or mountains, do you want to be near relatives. Do your research and use a local real estate for help with choosing the right area or neighborhood.
Second is why – do you want a vacation house, a second residence if you spend a lot of time in an area for work or family or do you want an investment property? You can actually combine these and use a second home for vacations and AirBNB it while you’re not there (of course check local rules regarding this).
Third and perhaps most importantly is how – as in how are you going to finance it 🤓. You will often need a higher down payment for a second home, as default rates tend to be higher. And with an additional mortgage, you’ll need to make sure your DTI (Debt to Income) ratio is not too high. You’ll also want to make sure a second home doesn’t stretch your budget to much, you should factor in maintenance, property taxes in addition to mortgage payments. If you are planning on renting make sure you factor in the property not being rented immediately and plan to set aside ten percent of rental income towards maintenance.
If you are ready to start looking – apply online and we can let you know how much you can pre-qualify!

There are a lot of benefits to being self-employed – you’re your own boss but when it comes to getting a mortgage secured, its a slightly different process than traditional mortgages. It often comes with additional requirements and red tape.
Here are some tips to help you get organized and approved if you’re self employed. Apply for a mortgage when your income is up (we know this is easier said than done) but lenders will look at your last two years income most closely, and if you’re income fluctuates its best to apply on an up year. This can help you qualify for a greater loan amount and lower interest rate. Get That DTI lower, your debt-to-income ratio is one of the key factors in getting approved. So you’ll want to try to pay down debts (both business and personal) as well as avoid opening new lines of credit a few months before applying. Don’t Mix Business and Personal Keep your business and personal finances separate. Have separate bank and credit card accounts for your business and personal use. This will help lenders easily see the business income and expenses as well as show you are running your business in a professional manner. Give us a call or contact us from our pre-qual app and we can see what product best fits your needs. You may be a candidate for QM (Qualified Mortgage) or non-QM lender, either way we can review and help you get started!