Tag Archives: mortgage rates

7 Ways for Homebuyers to Deal With Rising Interest Rates

24 Tuesday Jun 2025

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As a Jacksonville buyer in today’s market, it’s understandable to feel hesitant after seeing how fast things moved just a few years ago. Many locals who purchased in 2020–2022 enjoyed quick closings, multiple offers, and homes selling well above asking price. But the market has shifted toward balance, with more homes available, longer days on market, and sellers becoming more flexible. If you’ve been waiting for better conditions, this could be an ideal window to step in before competition heats up again.

Yes, they are still historically low compared to decades past, but that doesn’t change the fact that they’re higher than if you’d bought a house just a couple of years ago. Kind of painful to hear, huh? For context, 30-year fixed mortgage rates hovered around 3% or lower in 2020–2021, but today they’re in the mid-6% range—meaning a $400,000 loan costs hundreds more per month in interest, pushing affordability lower for many Jacksonville buyers.

Interest rates are on the rise.

They’re still historically low.

What you’d probably rather hear is that rates and house prices will come down dramatically in the near future, so just hold on and waiting will pay off. Unfortunately, forecasts suggest rates could stabilize or edge higher in the short term, and while inventory is improving, home prices aren’t poised for a big drop—especially in desirable areas like Jacksonville where demand remains strong.

Clean up your credit. The better your credit is, the better your rate will be. Pull your free credit reports (from AnnualCreditReport.com) and review for errors, high balances, or late payments. Dispute inaccuracies, pay down credit card debt (aim for under 30% utilization), and avoid new credit inquiries. Even a 20–50 point score boost can shave 0.25%–0.5% off your rate, saving thousands over the loan term.

Shop around. Don’t settle for the first quote—compare at least 3–5 lenders (banks, credit unions, online lenders). Use a mortgage broker for broader access. Watch for hidden fees; a “great” rate with high closing costs can cost more overall. Local Jacksonville credit unions or community banks often offer competitive rates and personalized service for residents.

Buy discount points. Pay upfront “points” (1 point = 1% of loan amount) to permanently lower your rate—typically 0.25% reduction per point. For a $400,000 loan, one point costs $4,000 but might drop your rate from 6.5% to 6.25%, saving ~$60/month. Great if staying 7+ years; calculate break-even (usually 3–5 years) with your lender.

Lock in your rate. Rates can fluctuate daily—lock when you’re under contract (usually 30–60 days). Ask about costs (often free or low) and a “float-down” option: if rates drop before closing, you get the lower rate. This protects against rises while allowing benefit from declines.

Get an adjustable rate mortgage (ARM). ARMs start with lower rates (e.g., 5/1 ARM at 5.5% vs. 6.5% fixed) for an initial period (5, 7, or 10 years), then adjust annually. Ideal if you plan to sell or refinance before the fixed period ends—perfect for short-term owners or those expecting rates to fall.

Pay biweekly. Split your monthly payment in half and pay every two weeks—results in 26 half-payments (13 full) per year, knocking years off the loan and tens of thousands in interest.

Refinance when rates go down. Monitor rates closely; if they drop 0.5%–1%+, refinancing can lower payments significantly. Factor in closing costs (2–5% of loan) and break-even time.

So, even if rates aren’t as low as the recent past, you still have real options and control over your interest costs. Use one or a mix of these strategies to save money and make homeownership more affordable in today’s market.

Let’s strategize together on the best path for your situation—whether buying now, waiting, or optimizing financing.

Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 www.HanleyHomeTeam.com

Buying a Home? Don’t Believe This Terrible Mortgage Advice

21 Monday Aug 2023

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When you’re buying a home, people seem to come out of the woodwork to give you advice.
But a lot of that advice is actually terrible, and could actually get you in trouble if you listen to it.

So what, exactly, is that terrible advice? A recent article from realtor.com outlined some of the worst mortgage advice buyers receive when getting ready to buy a home, including:

  • “You don’t need to get pre-approved for a mortgage.” If you’re just starting to look at homes, and aren’t sure when you’re going to buy, some people will tell you not to worry about getting pre-approved for a mortgage. But if you don’t, you have no idea how much house you can afford, and as you’re looking at homes, you might fall in love with a property that’s completely out of your price range. That’s why it’s important to get pre-approved before you start looking at homes; not only will it help you avoid the heartbreak of falling in love with a too-expensive home, but if you do decide to put in an offer, it can help give you a competitive edge over buyers that didn’t go through the pre-approval process.
  • “You should get a mortgage from the same place you have your bank account.” Your bank might be able to give you the most competitive rate on a home loan, but they might not, and if you don’t compare loans from multiple lenders, you’ll never know. Before you buy a home, make sure to shop around and go with whatever lender is going to give you the most favorable terms, regardless of whether you have an account there or not.
  • “Borrow as much as the bank will give you, and spend it all.” Just because a bank is willing to give you a certain amount for a loan doesn’t mean you have to take or spend it all. Buying at the top of your budget can add financial stress to your life, and if you end up facing an unexpected financial hardship — like a job loss or serious medical expense — it could make you unable to pay your mortgage. Before you buy a home, make sure to iron out what you can comfortably afford and only borrow that much (or less), even if the bank is willing to give you more.

Get in touch and let’s get you the right pre-approval! Kevin and Jennifer Hanley, REALTORs, SRES. Luxury The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

Are Mortgage Rates Back to “Normal”?

22 Wednesday Feb 2023

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If you think mortgage rates are at an all-time high, you wouldn’t be alone. According to this NerdWallet article, 61% of Americans think they’re “unprecedented.” And you’re also not alone if you’re still planning on buying a home this year, despite that sentiment, considering 28 million people plan to do so according to their survey!

The thing is, mortgage rates aren’t actually the highest they’ve ever been; not by a long shot. Those low rates buyers were getting over the past few years were historically unusual, and now they’re not just back to “normal”—even below normal—considering data from Freddie Mac shows that 30-year mortgage rates have averaged 7.75% over the last 50 years.

When rates were unusually low, it almost didn’t matter if you weren’t careful about the type of loan or terms you agreed to with a lender. But now that rates have crept up, you want to make sure you not only get the lowest rate you can, but also the best type of loan and terms possible.

So let’s take a look at 5 things you should do to make sure you get the best loan possible in this market, or any other market for that matter:

1. Get Pre-approved Ahead of Time

You should always get pre-approved before you actually start looking at homes you want to buy, but many people don’t. On the most basic level, doing so helps you know that you can actually get a loan, and how much you can afford to spend. That helps you to avoid the wasted time and heartache of finding a house you love, only to find out you can’t actually afford to buy it.

But beyond that, getting pre-approved ahead of time is a good chance to speak to a few mortgage professionals and get a feel for them, which leads to…

2. Find a Mortgage Professional You Trust

As with any profession, not all mortgage professionals are going to provide you with the best advice and service. Some will woo you with what sounds like the best rate, while glossing over other costly terms, or switching the rate on you at the last minute.

Look for one you not only trust is being transparent and honest about the rates and terms they can offer you, but who also takes the time to explain all of your options—even if their rate doesn’t sound as low as others. 

3. Choose the Type of Loan That Is Best for You

The historical rates mentioned above are based upon 30-year, fixed rate loans. Those are probably the “safest” and most predictable loans. But there are other options, like 7 or 15-year adjustable rate loans, which will usually have a lower rate, but may actually cost you more per month due to the shorter term of the loan, and the rate can go up after a number of years at a fixed rate. It could be a great way to save on interest and make more payments toward principal, if you know you’re going to sell or refinance before the rate changes. And who knows, the rates could be lower by then anyway.

Adjustable rate mortgages are just one example of the many different options you may have. If you choose a great mortgage professional to work with, he or she can help you analyze all of the different types of loans available to you, and help you figure out which one makes the most sense for your situation.

4. Don’t Stretch Yourself Financially

Just because you’re pre-approved for a certain amount doesn’t mean you have to (or should) spend every penny you can.

It’s not uncommon to be pre-approved for more than you may actually be comfortable spending per month on a mortgage. While a lender’s calculations should indicate that you can handle the payments on an ongoing basis, only you truly know your lifestyle and spending habits. 

Ask your mortgage professional to give you an accurate estimate of how much per month it will cost you, if you were to spend as much as you’re approved for. (And remember to factor in property taxes and insurance, which will vary from one house to another.) Then think about paying that amount every month. Is it something you’ll be able to comfortably swing? Will it impact the things you like to spend money on weekly, monthly, and yearly? 

You can also ask the mortgage rep to figure out about how much of a loan you should take on based upon a monthly payment you’re comfortable with, and use that as the top amount of your budget, even if it’s lower than what you’re actually approved to spend. And you can even try and spend less than that amount, if you want to really play it safe!

5. Shop and Negotiate for the Best Rate

While the rate isn’t the only or most important thing to consider, you should still shop around to make sure you’re getting the best rate possible. As mentioned above, when speaking with lenders, size up whether they’re being entirely honest and transparent about the rate and terms they’re offering.

If you get a better rate from one lender, see if the lender you trust the most can match it, or even beat it. But even if they can’t, keep in mind that it may be worth taking a slightly higher rate if you trust one lender above others who offer you a better rate.

The Takeaway:

Many people feel like mortgage rates are higher than they’ve ever been, but they’re actually not. In fact, they’re currently lower than the average rate over the past 50 years.

While being careful about the lender and loan you chose to go with didn’t matter as much when rates were unusually low over the past few years, now it pays to go back to basics and make sure you:

  • Get pre-approved ahead of time
  • Work with a mortgage professional you trust
  • Choose the best type of loan for your needs, situation, and qualifications
  • Avoid stretching yourself financially
  • Shop and negotiate for the best rate you can get

Let’s get started today! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside HanleyHomeTeam.com 904-515-2479

Getting Ready to Buy a Home? Use These Tips to Boost Your Credit Score

24 Wednesday Aug 2022

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Your credit score plays a major part in your ability to secure a mortgage—and to secure a competitive interest rate on your loan. So, before you buy a house, you’ll want to do everything you can to get your credit score as high as possible.

So how, exactly, do you do that?

A recent article from realtor.com outlined strategies potential buyers can use to boost their credit score before they purchase a home, including:

  • Increase your credit limits. If you can’t pay off your credit card debt, one trick to boost your score is to ask your credit card company to increase your credit limit. Increasing your credit limit will improve your debt-to-credit ratio (how much you owe relative to how much credit you have available)—which plays a huge role in how lenders evaluate your creditworthiness for a mortgage.
  • Try to erase one-time mistakes. If you have a history of paying your bills on time, but have one or two late payments on your credit report, try reaching out to your credit card company and asking them to remove the late payment from your credit report. While this won’t work for people with a history of late payments, if you have a mostly positive track record, they may be willing to work with you.
  • Pay on time. If your credit score is less-than-perfect because you have a history of late payments, it’s time to start paying your bills on time. The more consistently you pay on time, the more your credit score will improve—and the easier it will be to get a loan.

Want more tips? Get in touch today! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside HanleyHomeTeam.com 904-515-2479

Mortgage Interest Rates Are Rising, but You Can Still Get a Great Deal—Here’s How

21 Thursday Apr 2022

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Mortgage rates are rising—and fast. According to data from Freddie Mac, the average interest rate for a 30-year fixed-rate mortgage hit 4.16 percent the week ending March 17—the first time rates have exceeded 4 percent since May 2019.

But don’t panic! Rising interest rates don’t have to put your home purchase on hold; you just need the right strategies to get a good deal.

So what, exactly, are those strategies?

A recent article from realtor.com outlined strategies buyers can use to score a great deal on their home (even as mortgage interest rates rise!), including:

  • Purchase points for a lower rate. Mortgage rates may be on the rise—but you can still lock in a low rate. Points allow you to pay an upfront fee to lower the interest rate on your mortgage; generally, 1 point will lower your mortgage rate by 0.25 percent—and will cost you 1 percent of the loan. It’s an upfront cost, but it can drive significant savings over the course of the loan—so if you can purchase points to lower your rate, you’ll definitely want to consider it.
  • Target homes that come in under budget. As interest rates rise, your dollar won’t buy you as much house as it did at a lower rate. That’s why, if you want to keep your monthly mortgage payment at an affordable level, you should consider targeted homes that are under your budget.
  • Explore down payment assistance programs. As interest rates rise, you may not be able to get as competitive of a mortgage as you could have when rates were hovering near all-time lows. But you can still find ways to save money on your home purchase—including down payment assistance programs. There are a variety of assistance programs in place (for example, programs for first-time homebuyers and programs for civil servants, like firefighters or teachers)—so it’s definitely worth doing some research to see if there are any programs you qualify for.

The Takeaway:

Interest rates may be rising, but there are still great deals to be had—so if you’re thinking about buying a home, don’t let the increase in interest rates stop you! Get in touch!

Kevin and Jennifer Hanley, REALTOR, SRES. Luxury OVER 1000 HOMES SOLD!
The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

New Federally Backed Loan Limits May Help Homebuyers In 2021

07 Monday Dec 2020

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Home prices have been steadily increasing in 2020—and as home prices increased, many buyers found they needed larger mortgages in order to purchase homes. But because there’s a limit on conforming loans, many buyers either had to explore alternative loan options (which often carry a higher interest rate) or look for homes in a lower price range (which, with inventory low in markets across the country, proved extremely difficult).

Luckily, access to larger conforming loans is on the horizon.

On November 24, the Federal Housing Finance Agency announced they would officially be increasing the conforming loan limits for Fannie Mae and Freddie Mac-backed mortgages in 2021. Currently, the limit for conforming loans for single-family units for most areas of the United States is $510,400. That limit will increase to $548,250 in 2021—an increase of 7.4 percent.

In higher cost markets (like areas of California and New York), the limit for conforming loans will be higher at $822,375—which is 150 percent of the baseline conforming loan limit of $548,250.

The Takeaway:

What does that mean for you? Increasing the limit for conforming loans will allow buyers to increase their purchasing power and keep up with rising prices—so if you’ve been thinking about buying a home, 2021 is looking like a great time to make a move. Let’s get started! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

Should You Apply for an Online Mortgage?

30 Wednesday Sep 2020

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A mortgage is a big financial responsibility. Yet, if you’re like half of all home buyers, chances are you won’t shop around for the best mortgage. The result could be the loss of thousands of dollars…both in up front costs and in monthly payments. It pays (a lot) to shop around.

As a home buyer, you have three options for getting a mortgage: a traditional bank, a mortgage broker, and an online mortgage lender. Here’s a quick breakdown of the differences. 

  1. The Traditional Bank

A traditional bank offers in-house loans. You may get better rates and closing costs from your own bank if you’ve banked there a long time. On the other hand, you will only get the rates and terms they dictate, which might be limited. You probably won’t have a lot of choices. It pays to check at other institutions to compare the rates and terms of your bank’s offer. 

  1. A Mortgage Broker

A mortgage broker’s job is to act as your guide to helping you find a mortgage that fits your needs. The broker can shop around to find banks and other sources of funds that are the best rates and terms, based on your credit and income. 

Brokers are usually experienced loan specialists. Unlike big-bank loan officers, brokers will work with you to answer your questions and look for options. If you bring your big bank’s offer to a broker, he or she can compare for you. 

Brokers promote loan products that provide them with a finders’ fee. Since those fees are already built into the loan products (whether to benefit a broker or a bank’s own loan officer costs), you likely won’t see much of those fees passed on to you. 

  1. An Online Mortgage Lender

The great advantage to using an online mortgage lender is that you may get great rates and fees. Online lenders don’t have to cover a lot of overhead, so they can offer discounts to their borrowers through lower rates or closing costs. Even a quarter of a percent lower interest rate can potentially save you thousands of dollars over the life of your loan.

Another advantage is that you don’t need to talk to anyone. How convenient to have a burger, watch TV, and fill out a loan application all at once! Of course, convenience is also a big drawback. 

If you have a question, no matter how small, you won’t be able to get a quick answer, if at all. With online lenders, they will assign someone to work with you (a loan officer). That person has a huge work load and is often fairly inexperienced with nuanced questions. And in my experience, the questions are always nuanced. 

For example, take the question of assets and liabilities. Do you include your child’s college savings account? Is that going to risk you using that account if needed to pay for tuition next month? Should you include the fact that you’re on your nephew’s car loan, even though he’s paid it on his own for years and it’s almost paid off? Is your secret PayPal account going to show up on your assets, even if you don’t want it to?  

So Which Should You Use?

Use at least two sources. Make sure one of them is a mortgage broker. 

The Online Lender: If your situation is relatively straight forward…you have a regular job, a regular pay check, no weird debts or assets, then an online lender can be a great option. Make sure you read about warnings in the section below.

Big Bank or Credit Union: If you have a great relationship already, see if they have special rates and terms for long-time customers. In my experience, you’ll often end up in a situation similar to working with an online lender, because the bank is going to assign a loan officer, who may or may not be able to answer your questions. 

The Mortgage Broker: I highly recommend that one of your comparison points be a mortgage broker. Brokers are usually very experienced and can answer a lot of your questions. They’ll be able to shop around to find loans that might have comparable rates and terms to the ones offered by your bank or online lender. And they’ll let you know if your bank or online lender is a better deal. 

The biggest problem with applying to multiple sources is the fees. You’ll have to fill out the loan application multiple times, and your credit will be pulled multiple times, and you’ll have to pay multiple application and credit report fees. This is the reason most people don’t apply to multiple sources. However, you may be able to do a preliminary application, especially at the online sources.  Find out before completing the application if there are fees.

Warnings about Online Lenders

Most of them are not lenders at all. They might be brokers, they might “non-bank investment companies,” or they might simply be third-party comparison sites. There’s nothing wrong with any of these, but you should know what you’re getting. 

Lendingtree or Bankrate are examples of third-party comparison sites. They won’t give you a loan and can’t tell you which loans are best for you. They’ll simply show you funding sources that they have affiliate agreements with. You may find this useful for comparing different lender rates. Google “Mortgage Comparison Websites”.

Most online lenders are non-bank investment outlets. Quicken Loans or Meridian are examples. They’ll process your application and fund the loan using large institutional investor funds. They’ll likely sell your mortgage as part of a package of loans to other investors. There’s nothing wrong with this. It’s very common in the mortgage world. Before filling out any online mortgage application, check on the site’s credentials. You don’t want to start giving financial information online without vetting them first. Google “Non-Bank Mortgage Lenders”.

A few of the online lenders are in fact mortgage brokers, such as Intellimortgage. You’re simply filling out a loan application in advance, and they’ll consult with you to find you the best mortgage. I’d personally rather meet with a mortgage broker in person or talk by phone, rather than using an online mortgage broker. It’s just easier to get answers from a live person. Google “local mortgage brokers in (your location)”. Find a live person to talk to.

And of course, big banks like HBSC and Chase are online, too, so when you get a list of options from LendingTree or you Google “online mortgage,” there’s a very good chance you’ll simply be getting a bank. Double check whether the name of the company you’re shown in any online search or list is a bank, a non-bank, or a broker. 

Will Applying Ruin My Credit? 

It’s true that applying for credit can lower your credit score. However, when applying for mortgage loans for comparison purposes 2-3 times, your credit score will likely not be affected. Even if it is, it’ll usually only drop a little and only after you’ve already applied. If your score drops, a simple explanation that you were comparing lenders will suffice and your original rate at the time of application will stand.

Ask us for some recommendations for mortgage brokers in our area! Kevin and Jennifer Hanley, REALTORS http://www.HanleyHomeTeam.com 904-515-2479 Team@HanleyHomeTeam.com

Homebuyers need to act now

04 Wednesday Feb 2015

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CHICAGO – Feb. 4, 2015 – Homebuyers need to move fast if they want to spend less, according to Jonathan Smoke, chief economist at realtor.com.

“Delayed purchases will only result in higher monthly mortgage payments as prices and rates rise,” Smoke writes. Realtor.com forecasts that affordability may decline as much as 10 percent over the year.

The Federal Reserve continues to remind the financial markets that it plans to raise its target federal funds rate this year, which will cause mortgage rates to rise. Many economists predict that 30-year fixed-rate mortgages will average near 5 percent by the end of the year.

For now, mortgage rates are near historical lows for homebuyers and homeowners. Freddie Mac reported last week that the 30-year fixed-rate mortgage averaged 3.66 percent (last year at this time it averaged 4.32 percent), and 15-year fixed-rate mortgages averaged 2.98 percent (a year ago, it averaged 3.40 percent).

“Right now, the Fed is using the word ‘patient’ to describe its approach to picking the time to raise the target rate,” Smoke notes. “However, when the Fed ‘loses patience,’ rates will go up at least 20 to 40 basis points in anticipation of the target rate officially going up. … So, buyers beware: The clock on these low mortgage rates may be ticking.”

Source: “2015: Buy Now, Before the Fed’s Patience Ends,” realtor.com® (Jan. 30, 2015)

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