Mortgage Rates Forecast – Will Interest Rates Drop in the Fall?
The mortgage rates forecast for the fall is going to be quite interesting. Interest rates were quite stable during the month of July but that has totally changed in August. Coming into August we saw mortgage rates hover between 5.1% and 5.3% for much of July. At the end of July the 10 year treasury rate yield started to uptrend causing mortgage rates to move up as well.
When the 30 year fixed mortgage rate moved from 5.05% to 5.5% many analysts were predicting that overall home loan rates were going to head towards 5%. Well, the Federal Reserve Bank came out and made the comment that they were going to do everything in their power to make sure rates stay at historically low levels. After this announcement we saw average rates start moving lower again. In fact, home loan rates moved all the way down to 5.1% at the end of the second week in August.
The current interest rates forecast is very difficult for this reason.
It seems that every time we see home rates move higher, the Federal Reserve makes an announcement that they will continue to do whatever it takes to make rates fall. Every single time we see rates move higher, Ben Bernanke comes on the television and makes a comment about how we are going to continue to rates at historically low levels and that everyone should get out there and work to refinance their home or buy their first home.
Subprime Blogger offers a series on mortgage rates forecast and where rates are likely to go. Giving an accurate interest rates forecast can be very difficult but we do our research before making any final decisions.
Mortgage Ireland – Types of Mortgage Loans
Mortgage Ireland – Types of Mortgage Loans
According to the Bank of Ireland, there are many different homeowner mortgage packages available. These include: a First Time Buyer’s Package, a Trade Up Mortgage, a Switcher Package, a Breakthrough Mortgage, an Equity Release, an Investment Property Package, and a Lifeloan.
The First Time Buyer’s Package offers a 1 year fixed rate of 2.6% APR, then rolls over to a variable rate. Buyers can also receive 20% off the annual insurance premium. The loan must be for a minimum of E150,000 to qualify for the reduced insurance premium. An individual will need documentation of rent payments, a savings account, proof of secure employment, proof of income, a credit history, and spending history.
The Trade Up Mortgage Ireland package has fixed and variable rates. A potential buyer can get a 1 to 5 year fixed rate, which then rolls over to a variable rate. A bonus of E150 furniture removal voucher is included.
The Switcher Package offers an E1000 contribution for legal fees. There is also a 20% discount off of the annual insurance premium. Once again this is only for loans starting at E150,000.
A Breakthrough Mortgage can be acquired if an applicant qualifies for a Local Authority Affordable Housing Scheme. A loan for up to 97% of the purchase price may be obtained and can be financed for up to 35 years. Fixed and variable rates will apply. An applicant is not qualified for this loan if building a house on an Affordable Housing Site.
An Equity Release homeowner mortgage can be repaid in 5 to 30 years. One can borrow from E5, 000 to 90% of the home’s value. Once again 20% off the annual insurance premium is offered for loans of E150,000 or more.
Investment Property loans can be financed for as long as 25 years. An interest only mortgage may be obtained with the borrower paying interest only for the first 1 to 5 years. The loan then reverts to a standard repayment mortgage.
To qualify for a Life Loan, the borrower must be 65 years or older. You can acquire a lump sum of anywhere between E20,000 to E400,000. There is no repayment until the home is sold, the home is vacant for 6 months, or the borrower passes away. If considering a Lifeloan an individual is required to obtain independent welfare, financial and legal advice before applying. Rates on this type of loan are fixed for 15 years, after which a choice of fixed or variable rates applies. Depending on location, a minimum property value applies.
A Home Buy Direct equity loan is free of charge for the first 1 to 5 years. This money can be used for a deposit and to cover up to 30% of the purchase price. Annual income must be less than E60,000 to qualify for this mortgage.
Mortgage Ireland offers tax relief to borrowers. Rates apply for the first 7 years then gradually decrease thereafter. The amount of relief depends on whether you’re a first time buyer mortgage, married, single, or widowed.
Categories: Ireland Packages Tags: Ireland, Loans, Mortgage, trade up mortgage, Types
