RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

Confused about Interest Rates? You're Not Alone

February 10, 2015 1:48 am

Mortgage holders: Do you know your interest rate? According to a recent Bankrate.com report, just over a third of mortgage borrowers (35 percent) aren’t completely sure of the interest rate they’re paying. One in seven mortgage holders reported being “not too confident,” “not all confident” or simply have no idea what their interest rates are.

“Your mortgage is one of the most important numbers in your financial life, and there’s a good chance that one of your neighbors has no idea regarding how much he or she is paying,” says Holden Lewis, senior mortgage analyst at Bankrate.com. “Given how far mortgage rates have fallen, these people could be missing substantial opportunities to save money by refinancing.”

Mortgage rates are well below historical norms. The average fixed-rate 30-year mortgage is now 3.80%. It was well above six percent as recently as 2008, and in 2000, it was close to eight percent. Refinancing a $200,000 loan from 6% to 3.80% would save $267 per month; refinancing from 8% to 3.80% would save $536 per month.

Analysts expect mortgage rates to rise in the coming months.

Source: Bankrate

Published with permission from RISMedia.


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Residents Facing Earthquake Risk Should Bolster Insurance

February 10, 2015 1:48 am

Earthquake insurance provides protection from the shaking and cracking that can destroy homes and personal possessions. Earthquakes are not covered under standard homeowners insurance policies, but coverage is usually available in the form of a supplemental policy, according to the Insurance Information Institute (I.I.I.).

Coverage for other kinds of damage that may result from earthquakes, such as fire and water damage due to burst gas and water pipes, is generally provided by standard homeowners and renters insurance policies.

Earthquake insurance carries a deductible, generally as a percentage rather than a dollar amount. Deductibles can range anywhere from 2 to 20 percent of the replacement value of the structure. This means that if it costs $100,000 to rebuild a home and there was a 2 percent deductible, the owner would be responsible for the first $2,000 dollars. Insurers in states with a higher risk of earthquakes often set minimum deductibles at around 10 percent. In most cases, consumers can get even higher deductibles to save money on earthquake premiums.

Source: I.I.I.

Published with permission from RISMedia.


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