Cove Real Estate



Posted by Cove Real Estate on 11/21/2014

The housing market may be in recovery and some analysts are predicting that mortgage rates will be heading upward. In that case, and in any case prospective, current home seekers as well as homeowners are always looking to lock into the lowest interest rate possible. Here are some tips to help home buyers shop for the best rate: Before you call your lender and ask for the best rate you need to know two things: 1. The number of points you want to pay. 2. The length of time you want to lock in the rate. Knowing what you are planning on doing with your home and how long you intend to stay there will give you a baseline for comparison of rates. Don't just call any old lender advertising the lowest rates. As not all real estate professionals are alike, neither are lenders. You need a reliable lender who will not try to trick you into a lower rate only to change the rate on you later. The best way to find a lender is through a referral.  Once you have found a lender you will want to shop around for a few more. Make sure to be up front with everyone, and be consistent. Call them all on the same day and provide the same information to everyone. The interest rate is not the only fee to consider when borrowing money to buy a house. Be sure to ask about all the additional fees associated with the loan. For more information check out the Truth in Lending Act.    





Posted by Cove Real Estate on 5/9/2014

If you are thinking about buying a new home you are probably hoping to get the best value for your money on a house, but what about your home loan? The rate and terms of your mortgage can have a big impact on your wallet. This is why it is so important to shop for just the right home loan. There are two main factors to consider when shopping for a loan: the type of loan and the terms of the loan. Do your homework before looking at home loans. Even one half of a percentage point makes a big difference over the full term of the loan. A 30 year loan of $200,000 at a 5% fixed-rate, will cost you about $22,000 more in interest than if the interest rate was set at 4.5%. Other things to look at when shopping for a home loan are closing costs. Mortgage companies charge additional fees such as origination fees, title charges, appraisals and even credit checks. Make sure to consider these additional expenses when shopping for a home loan. You can also save money by not maxing out your budget. Just because you are pre-qualified for a loan doesn't mean you should spend the maximum loan amount on a home. Don't allow your total house payment (principal, interest, taxes and insurance) to exceed 28% of your gross monthly income.