Dirk Webster With Ruoff Mortgage Shares Some Sensible Advice
Writer / Noah Alatza
Photography Provided
As the Federal Reserve raises interest rates to the highest levels in years, local economic experts are sharing advice on how to curb inflation and economic pain for consumers.
From gas to food, car and home prices, almost everything seems to have been touched by inflation, as Americans look ahead to a path out of the pandemic. In an effort to cool inflation, the Federal Reserve has been raising key interest rates at a rapid pace, but that also means the cost for a home mortgage has increased.
Dirk Webster, current Ruoff Mortgage vice president and manager for the Kokomo branch, says there are many ways consumers can fight off high inflation and soaring interest rates.
“Down payment assistance is still readily available for qualified borrowers,” he says. “For borrowers that meet certain income criteria, they can get up to 6% in down payment assistance that can be used towards down payment and closing costs. That helps people get into homes sooner than if they had to save that money themselves.”
Webster says that rates have been so low for so long, that it’s difficult for buyers in today’s market to understand that historically speaking, today’s rates are still very low.
Today’s rates are still quite low, just not crazy-low like we saw for the past couple of years. While property values are unlikely to continue the rapid appreciation we’ve seen in recent years, they are unlikely to depreciate much. So it still makes sense to buy that new home here, and if rates eventually drop again in the future, you can always refinance at that time.”
“Twelve months ago we were seeing rates in the twos and threes, and now we are in the high fives and low sixes,” he adds.
Webster says people need to start being more mindful about budgeting during these uncertain times.
“Consider seeking the help of a financial planner to come up with a budget, and then stick to it,” he says.
There are a couple ways to combat today’s higher rates. First, consider buying down your interest rate by paying points. NZ mortgage brokers can give you more mortgage tips. “If a couple is buying their dream home and fully intends to remain in their new house for the long haul, it might make sense to discuss buy-down options with your lender,” Webster says. “Paying a little more up front, such as exploring Baufinanzierung Dresden options, could potentially save thousands of dollars over the life of the loan, ensuring a more financially secure future for the homeowners.”
Webster also states that for the first time in a long time, people are inquiring about adjustable-rate mortgages (ARMs). Check out the website of Highline Mortgage for more information.
“An ARM is also an option because they typically start out lower than a fixed rate would,” he says. “With an ARM, the initial rate will be fixed for a specified period of time, but after that the borrower’s payment will adjust to the market conditions at that time. This means their monthly payment could potentially increase in the future. That’s the risk of an ARM.”
Now more than ever, credit scores are extremely important, according to Webster.
“Building and maintaining a good credit score will help a person secure the best interest rate available,” he says. This not only helps them save interest on their installment loans, but it could potentially allow them to buy a more expensive home.
For more tips and to learn more about Ruoff Mortgage, visit theruoffteam.com.
