Does it cost more to own than to rent, Yes... BUT

Owning a home is often considered the American dream and it's an expensive one. Homeowners in all states and Washington, D.C., can pay anywhere from 33% to 93% more for housing each month than do renters living in the same state.

The upside? Many homeowners reap benefits that renters cannot, such as financial security and stability, tax deductions and a sort of forced retirement savings. Every time you make a mortgage payment, you get closer to fully owning the home. The equity you build can be collateral for loans like cash-out refinances, home equity loans and lines of credit that can be used to improve the home, boost its value or be used to consolidate debts and in financial emergencies.
  

While renting can't offer those long-term financial benefits, it is cheaper to rent on a month-to-month basis obviously. If you're considering buying, before entering the market, contact Rockland Financial  to estimate the costs and compare mortgage rates so that we can find you the best deal.

Let us help you determine where you stand and provide you with a financial analysis that will assist you in determining your best course of action.

Key takeaway

• Owning is more expensive everywhere. Across all 50 states and Washington, D.C., it costs more each month to own a home than to rent. However the benefits are there and if it is in your financial resources to be a homeowner, there is no time like the present.   
  

Mortgage Rates Steady to Slightly Lower

Mortgage rates managed to maintain or increase the improvement since Wednesday's 3/15/2017 Fed announcement.  While the Fed did indeed hike the rate, the hike was widely expected and anticipated and had already been accounted for in the bond markets (like those that dictate mortgage rates).  The easiest way to understand this is to consider that most bond market securities can move/change every millisecond of every business day.

The Fed Funds rates, on the other hand, only changes/moves at the end of scheduled Fed meetings eight times per year.  If bond markets are reasonably confident the Fed will be hiking or decreasing interest rates, they can begin trading accordingly well in advance and thus build that into the rates we see before it is even officially announced.  That exact scenario played out over the past month and accounts for much of the move higher in rates from late February through Fed day.

Because bonds were already in position for the Fed hike meaning they had already anticipated the outcome, they were free to react to other aspects of the Fed policy.  Specifically, investors were expecting the Fed's forecast to show faster rate hikes in the future.  This accounts for some of the move higher in rates in early March.  The Fed's actual forecast turned out to be fairly tame and rates were thus able to move quickly lower.

There hasn't been much movement since the initial reaction to the Fed this past Wednesday. Conventional 30yr fixed rates continue hovering around 4.25% for top tier scenarios. 

Let us help you list your home for sale or allow us to guide you through your house hunt and purchase, Rockland Financial can help you A to Z...

Selling your home or looking to buy???

This Basically means it's backed by science... 

These people have great real estate humor (see pic below) and I am happy to share it with you. As you can see not calling me to find your dream home would be a big mistake, it's right there in black and white... actually in blue and whatever those other two colors are but you get the point. 

In this world of the internet I realize the general public is all about DIY everything including finding or selling their homes but this is one area where it rarely makes sense to do so. 

If you try and sell your home on your own, yes you will save that part of the commission 2-3% but often times your final sale price may end up being as much as 10% lower than if you went with a seasoned vet. So although it may feel as though you saved a few bucks at the beginning you actually end up with a smaller net profit. 

Selling a home is a large proposition and ideally you want to get the best money you can as quickly as possible. You probably are not an expert on real estate and 2 months spent online researching real estate is not a replacement for a good realtor who knows the business, the local market and the process.  *Market research, market analysis *Tips on making your home more attractive to potential buyers *Showing your home for you and fielding all inquiries *Presenting offers to you as they come in -- these are things Rockland Financial will help with and more. In essence I remove any of this burden from you, with the exception of keeping your house clean =) 

With your mortgage needs or real estate needs and very often for both, give us a shout.

Plus people love us on Yelp!   

Contact us we can help www.rocklandfin.com

*lighter side of real estate pic

General Loan Limits for 2017

The general loan limits for 2017 have increased and apply to loans delivered to Fannie Mae aka new lender in 2017 (even if originated prior to 1/1/2017). This is the first time the base loan limits have increased since 2006. 

 

What does this mean to you, well many consumers were on the bubble for a long time. By that I mean being in a position where they needed to obtain a high balance loan and along with that a higher rate because the loan amount they were applying for was above the conforming limit. Now with the higher limits, many more borrowers will be in a position to obtain the lower priced conforming loans.

 

Let us help you determine your possibilities.

 

General Loan Limits for 2017

Maximum Original Principal Balance for 2017

Units	Contiguous States, District of Columbia, and Puerto Rico	Alaska, Guam, Hawaii, and the U.S. Virgin Islands
1	$424,100	$636,150
2	$543,000	$814,500
3	$656,350	$984,525
4	$815,650	$1,223,475

Maximum Loan Limits for High-Cost Areas for Mortgages Acquired in Calendar Year 2017
All but 87 counties (or county equivalents) will see a loan limit increase.

Units	Contiguous States, District of Columbia+	Alaska, Guam, Hawaii, and the U.S. Virgin Islands
1	$636,150	$954,225
2	$814,500	$1,221,750
3	$984,525	$1,476,775
4	$1,223,475	$1,835,200

*source Fannie Mae

Mortgages Rates Uncertainty Remain HIGH

Hello again from Rockland Financial...

Rates have been edging higher recently, nothing drastic but they seem to be trending that way.

Interest rates didn't move much today, with most lenders just a bit higher than yesterday.  This actually keeps us in line with the highest levels in over 4 months.  However, for the sake of perspective, rates have almost never been as LOW as they are today.  The average lender is quoting conventional 30yr fixed rates of 3.625% on top tier borrowers, with a few at around 3.5%.

Bond markets that affect rate movement find themselves generally defensive and uncertain. Investors are anxious to see if next week's Fed announcement will hold clues about the Fed's intention to hike rates in early December.  Although the Federal Funds Rate doesn't directly affect mortgage rates, if investors think the Fed will hike in the near future, mortgage rates tend to move higher in the present. A bit of a knee jerk effect so to speak

That's one of the key reasons that rates have been seeing an uptick over the past few months.  The other major concern is that of the Fed's largest counterpart, the European Central Bank (ECB). Investors are anxious to find out if the ECB plans to begin reducing the amount of bonds it's buying each month.  This bond buying is a driving force and contributes largely to low rates around the world.  There are obviously rumors floating around on both sides of this debate, but we won't know anything for sure until early December we should hear ECB's thoughts.

There's a massive amount of uncertainty between the ECB and Fed, and this can't possibly be cleared up for more than a month. As far as strategy is concerned regadring mortgage rates, it makes more sense to be defensive (as in favoring locking vs floating) until at least and unless rates can stage a big enough comeback to call the recent uptrend into question.

And now the broken record part. Rates are still historically low and there are many reasons to take advantage and refinance, below are just a few.

If you are in the market to purchase, getting pre-approved is paramount.

Contact us to help you with any Real Estate need you have. (Rockland Financial is also now representing buyers and sellers with finding the perfect home or listing your property to get the highest price available)

FED decided, it's not quite time to make a move just yet

Federal Reserve still waiting for right moment to raise rates.

Fed leaders decided against increasing the bank's key interest rate on Wednesday September 21st after the conclusion of a 2 day meeting. This was widely expected by economists and investors alike.

"Our decision does not reflect a lack of confidence in the economy," said Janet Yellen, chair of the Fed. "It's better to err on the side of caution."

The Fed also downgraded their forecast of economic growth in 2016 for the third time this year. This could be a positive as rates are likely stay low a bit longer, at least that's what we hope here at Rockland.

Some experts have supported the Fed's decision, arguing that the risks out weigh the pros. It would be much worse to raise rates too soon rather than too late.

"The better decision would be to wait," says William Poole, senior fellow at the Cato Institute. "We can make up ground if we have to in the future but if we raised rates prematurely and then we had to back down, that's going to more disruptive."


For the rest of the year, 10 out of 17 Fed members project only one rate hike this year.

The Fed last raised interest rates in December 2015, its first increase in nearly a decade. Currently, interest rates are in a range of 0.25% to 0.5%.

So as it goes, we are currently still in this market of incredibly low interest rates. Saving money by refinancing is in full swing. With a myriad of reasons such as refinancing to lower your term (15 year fixed), refinancing to get cash for reserves or other investing and obviously getting pre-approved for a purchase money loan, the time is now to inquire about what is possible and what makes the most sense for your financial situation. 

We are always available and will gladly answer any and all questions you might have. Contact us and join the many others who have worked with us and have been totally happy with their results.

Rates are Approaching Another All Time Low... and, just married :)

Rates have steadily been decreasing in 2016, quite the opposite of what everyone thought might happen.  

To put in perspective, in terms of conventional 30 year fixed quotes on top tier borrowers, the best ever seen was a range from 3.125% - 3.25% during a few days in late 2012.  Rates did manage to spend a few days back down at 3.25% in early July 2016, however since then, the new range has settled between 3.375% and 3.5%.  In other words, rates have held for over a month at levels that are a mere quarter point higher than the all-time lows we saw back in 2016 and that only held for a few days.  So unless you happen to be one of the lucky few that got an application in during those brief moments, today's rates might as well be all-time lows.  Congrats to you and me (see pic below)! 

So to make quite the direct to point... REFINANCE NOW! This isn't likely to stick at least not for long, don't be one of those who ends up saying "I should've pulled the trigger on that refi"

BUY NOW... your buying power is at its peak. Once rates start to inch up you will no longer qualify for the same purchase price that you qualify for now with these incredibly low interest rates.

Contact us now to find out how your potential savings are or to get pre-approved for your purchase.

The time is now, do not miss out.

 (this is pretty random but I just got married on 8/13/2016 and this was our wedding selfie)