Due to a rising interest rate environment, the “clock is ticking,” for those interested in getting a new mortgage in 2014, writes ABC News in a report this week.
Among 10 Marketwatch tips offered for borrowers interested in financing a home purchase in 2014, ABC recommends locking a rate early, using bargaining power, refinancing (if possible) and taking care of credit.
Additionally, the tips suggest borrowers steer clear of Federal Housing Administration insured loans in light of rising mortgage insurance premiums expected in 2014.
“Considering an FHA loan? Reconsider,” the report advises. “FHA loans have long been popular among first-time homebuyers because they require low down payments and have somewhat less strict underwriting standards than conventional loans. But they come at a price. Mortgage insurance premiums on FHA loans are likely to continue to rise in 2014, and after recent changes, the borrower is now required to pay for mortgage insurance for the life of the loan. Try to qualify for a conventional loan before you apply for an FHA mortgage.”
There’s still time, however, ABC writes, for those who plan to purchase a home this year: “If you stay on top of your game, keep your finances in order and act quickly, you can still grab attractive mortgage deals.”
View the report.
Written by Elizabeth Ecker