QE3

The Federal Open Market Committee, said it was concerned that, without the action, “economic growth might not be strong enough to generate sustained improvement in labor-market conditions.” 

“A weak job market should concern every American,” Fed Chairman Ben Bernanke said at his press conference. 

In addition to bond purchases, the Fed said it intends to keep the benchmark short-term interest rate, known as the federal funds rate, at nearly zero until mid-2015. The prior guidance on the first rate increase had been late 2014. The guidance now extends well beyond end of Bernanke’s term in early 2014, although he could be appointed to another term by whoever is president. The central bank has kept the federal funds rate at nearly zero since December 2008. 

The Fed said it would keep low rates in place for a “considerable time,” even after the economic recovery strengthens.

Your Credit and How it Affects your Loan

North Capital Group looks at credit histories through a request to credit bureaus to review the borrower’s credit file. This allows us to make a more informed decision regarding loan prequalification. Through the credit report, we acquire the borrower’s credit score, also called the FICO score and this information can be acquired from the major credit bureaus TransUnion, Experiean, and Equifax. The FICO score represents the statistical summary of data contained within the credit report. It includes bill payment history and the number of outstanding debts in comparison to the borrower’s income.
The higher the borrower’s credit score, the easier it is to obtain a loan or to pre-qualify for a mortgage. If the borrower routinely pays bills late, then a lower credit score is expected. A lower score may require a larger down payment, or assess a higher interest rate in order to reduce the risk they are taking on the borrower.

Types of Loans

Conventional:

A fixed conventional loan is often a good choice for borrowers who have a down payment.

First-Time Home buyer:

These programs offer exceptional interest rates and require little or no money down. North Capital is one of the top lenders in the state for first-time home buyers. We have access to many flexible loan programs, including FHA and Utah Housing.

Reverse Mortgage:

A reverse mortgage uses your equity to generate income. The Bank makes monthly payments to you. The money from a reverse mortgage is usually considered borrowed money, so in many cases it does not affect your social security or Medicare/Medicaid benefits. The loan may also be tax-free (consult your tax adviser).

Rural Housing: ( USDA)

We offer United Stated Department of Agriculture guaranteed loans for those that live in a rural areas and have little to no money to put towards buying their own home.

Adjustable Rate Mortgage (ARM):

Usually ARMs offer a lower interest rate than a fixed-rate mortgage. Depending on the adjustment period, the interest rate of a ARM may increase over time. An Adjustable Rate Mortgage may be the way to go for those planning on living in their home for a short period.

VA:

We assist veterans and military on active duty to secure VA loans, with sometimes up to 100% financing.

Jumbo Loan:

If you're looking to borrow high loan amounts, we offer several jumbo loans to meet your needs.

To Rent or to Buy a Home? What Fits You?

The Advantages To Owning

One of the advantages of home ownership is the ability to deduct certain costs associated with home ownership from federal income tax.  Most homeowners itemize their deductions.  This allows, under current tax laws, the following deductions:

• Home mortgage interest
• Property real estate taxes
• State income taxes
• Personal property taxes
• Most moving expenses
  

Consult a tax professional for an accurate and up to date understanding of the full tax advantages of home ownership in your community.
Loan term equity is another advantage of home ownership.  A house may be an investment as well as a home.  Over time the value of the house may increase depending on market conditions.  To gain a more complete understanding of the history of home values in your neighborhood give us a call.

Other Factors To Consider

• Is your commute realistic and/or affordable?
• To purchase a home, can you continue to save money?
• Have you factored in maintenance costs of a home? Try this formula, 1% of the purchase price of the house for annual maintenance.
• In addition to the down payment have you factored in the closing and the moving costs of associated with a home purchase.

Do the math and compare it to the rent you are currently paying. You can do a home search online at www.HuntingtonRealestateGroup.com for anywhere in the Salt Lake area and there is a mortgage calculator at www.NorthCapitalFinance.com. Crunch the numbers and see if your ready for the American dream.