The home buying process is considered one of the most complicated buying undertakings, and it’s not without its reasons. There are several factors and variables that you must take into account to make a thoroughly informed decision. Still, there are facts that a vast majority of home buyers are unaware of. We have compiled some of those below:
1. Mortgage Rates Vary Daily
Statistics suggest that almost 55% of home buyers are not aware of the fact that mortgage rates vary. Mortgage rates are determined by a host of factors, and these factors alter almost daily. For example, the release of an economic report in the morning will lead to an immediate variation in the mortgage rate that same day – that’s how variable they can be.
Therefore, it is quite useful for prospective buyers to monitor these rates as it can allow them to save thousands of dollars in yearly mortgage payments. Even a change as insignificant as 0.125 percent can make a substantial difference in your annual mortgage payments.
2. Lender Fees Vary Too and Are Negotiable
Lender fees include several different costs. It may consist of credit report fees to origination fees to appraisal fees etc. and there’s no way around lender fees when you apply for a loan. But this does not mean that the charges are standard across the board. However, the vast majority of home buyers are unaware of this vital fact. Lender fees are negotiable, and you must shop and check out various lenders to get yourself the best deal.
3. Interest Rates Have Been Lower This Year
Mortgage interest rates soared through much of last year and almost touched five percent in the final quarter of 2018. The stock market pulled back subsequently. That, coupled with the geopolitical fears, led to investors moving their money into safer investments such as bonds. Mortgage-backed securities and treasury bills are where most of the money has been moved to.
As a result, interest rates have come down. Furthermore, the Federal Reserve has clearly hinted at adopting a measured and careful approach when it comes to increasing interest rates in the future. This indicates that the interest rates will be relatively lower throughout the year – good news for prospective home buyers.
4. The Negative Media Spin on Real Estate is Quite Beneficial
Real estate has been in the negative books of the mass media for a while now. This may just be good news for prospective home buyers. What used to be a seller’s market is transforming into a more balanced one. Sellers can now be seen bearing some portions of the closing costs – a practice that had long been forgone.
These concessions on the closing cost can contribute towards a plethora of other costs such as appraisals, lender fees, escrow account costs, etc. Furthermore, homebuyers can also utilize this closing cost concession to bring down interest rates on their home loan permanently.
Now that you know these facts that most home buyers are unaware of, you’re far better equipped to make a buying decision. If you’re looking to buy a house anywhere in Orlando, Florida, you can acquire our dedicated services and make the complex home buying process seamless for yourself.
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