Does Your State Determine Your Mortgage Payment?-Zack Childress

Kind of a catchy little head line there, but it’s true. If you want a cheap mortgage then you need to pick a state that is going to benefit you to get a better interest rate.

As Les Christie from CNNMoney.com says in the article below, “Where you live can also have a big impact.” This means your monthly payment on your mortgage and your interest rates. The reason for this is that in certain markets, if people have lots of job loss or are struggling and fewer people that have jobs, the lenders have to lower their rates. Lowering the rates creates payments that are suitable to the current market and the affordability index based on what homeowners can buy and afford.

It has a lot to do with where you live, believe that or not. I know it sounds a little ridiculous but it’s just the way it works. Also, it goes back to the bond yields. The U.S. mortgage rates are in tandem with the Bond Market. As the Bond Market moves, the rates move. They also take into consideration what the average homeowner’s median income is based on the Affordability Index and they offset the rates too.

You might want to take a look at this article. You may be deciding to move right now.  Picking the state could have a direct reflection on what your monthly payment is going to be. That’s my 2 cents. I look forward to hearing yours!

See original source:

Want a cheap mortgage? Move to these states

By Les Christie  @CNNMoney August 7, 2014: 4:19 PM ET

NEW YORK (CNNMoney)

Your credit score isn’t the only thing determining whether or not you get a good rate on your mortgage. Where you live can also have a big impact.

In fact, interest rates can vary dramatically from state-to-state.

States with the best (and worst) mortgage deals

State Average Rates

Lowest mortgage rates

  • Rhode Island 3.40%
  • Connecticut 3.41%
  • Nevada 3.46%
  • Pennsylvania 3.55%
  • Maryland 3.59%

Highest mortgage rates

  • Nebraska 4.10%
  • South Dakota 4.07%
  • Wyoming 4.06%
  • Vermont 4.02%
  • Oklahoma 4.02%

Source: GoBankingRates and RateWatch

Methodology: GoBankingRates surveyed mortgage rates for all 50 states and the District of Columbia using data from RateWatch. The study looked at more than 102,000 15-year fixed, 30-year fixed, and five-year adjustable-rate mortgage products to find the weighted average for each state and the District of Columbia.

Borrowers in Rhode Island are benefiting the most, according to a survey by loan information sites GoBankingRates and RateWatch. Borrowers there paid an average rate of just 3.4% on mortgages in July, about 0.35 percentage points below the national average.

Nebraska’s residents weren’t so lucky. They paid an average of 4.1%, the highest rate in the nation!

Over 30 years, that seemingly tiny 0.7 percentage-point difference means that a $200,000, 30-year loan would eventually cost $28,800 more in Nebraska than it would in Rhode Island.

So what gives?

On a national level, mortgage rates move in tandem with U.S. bond yields. Yet, several local factors, like property values, competition, and risk can impact rates as well.

In areas where the economy is struggling and fewer people have jobs, lenders need to lower rates in order to attract borrowers. If the economy is booming, then they can afford to bump rates higher.

Borrowers also tend to see lower rates in places where home prices are higher. That’s because lenders incur many fixed transaction costs. It can be just as expensive to process a $100,000 mortgage as a $300,000 one so lenders make up for that by charging higher rates for the smaller loans.

see more: Determine the mortgage payment

Don’t count out millennials

Risk is also a factor. The lower the average credit score in an area, the higher the rates. Also, states that make it easier to foreclose on delinquent buyers tend to be cheaper, according to James Zussman, a business development associate for RateWatch.

 

http://money.cnn.com/2014/08/05/real_estate/state-mortgage-rates/

 

8 Comments

  • Free Steam Games

    Reply Reply October 17, 2014

    Thank you for every other great article. Where else could anyone
    get that type of info in such an ideal method of writing?
    I’ve a presentation next week, and I am at the look for such info.

     
  • Thanks for finally talking about > Does Your State Determine Your Mortgage Payment?
    | REI Success Academy < Liked it!

     
  • Anonymous

    Reply Reply December 16, 2014

    You need to take part in a contest for one of the most useful sites on the net.
    I most certainly will highly recommend this web site!

     
  • Anonymous

    Reply Reply January 6, 2015

    Hello there! Would you mind if I share your blog with my facebook group?
    There’s a lot of people that I think would really
    appreciate your content. Please let me know.

    Cheers

     
  • Anonymous

    Reply Reply January 6, 2015

    It’s an remarkable paragraph in support of all the internet visitors; they will take advantage
    from it I am sure.

     
  • Windauer

    Reply Reply April 9, 2015

    Great items from you, man. I’ve remember your stuff previous to and you’re
    just extremely excellent.

    I really like what you have acquired right here, really likie what you’re
    saying and the way wherein you say it. You are making it enjoyable and
    you continue to care for to keep it smart. I cant wait to read far more
    from you. This is actually a wonderful web site.

     
  • Alphonse

    Reply Reply April 11, 2015

    Does your blog have a contact page? I’m having problems locating
    it, I’d like to shoot you an email. I’ve got some creative ideas for your blog you might be interested in hearing.

    Either way, great blog and I look forward to seeing it expand over time.

     
  • Marksbury

    Reply Reply April 12, 2015

    I do agree with all of the ideas you have offered on your
    post. They are really convincing and will certainly work.
    Nonetheless, the posts are very quick for
    novices. May you please extend them a bit from subsequent time?

    Thanks for the post.

     

Leave A Response

Please give answer to submit comment. * Time limit is exhausted. Please reload CAPTCHA.

* Denotes Required Field