The US housing market has been red-hot for a number of months now, but analysts are now seeing a cool – which is good news for homebuyers. CNBC highlights the mortgage rate dropping to below 3% in many states, a clear sign of the pro-buyer environment that’s being fostered. Acting now is the best option for would-be homebuyers; record high mortgage rates occurred only as recently as 2018, and the market could swing back that way. However, in what is sure to be a congested and high-pressure market, buyers must ensure they take it slowly in order to find a good deal.
The right broker
Mortgage brokers are part of the network of property professionals that make home purchasing a reality. Their methods of operation vary, from old-school professionals to new, digitally-focused lenders. This means that you can find a mortgage broker for any circumstance; homebuyers asking do mortgage lenders work on weekends, when busy working lives often necessitate business are done, are increasingly being attended to. There’s also the matter of fees – as US News outlines, mortgage brokers and lenders differ quite substantially on what costs they pass on to the customer. Shopping around will enable you to find the right deal and make sure that you don’t pay too much.
A suitable mortgage
The most popular mortgage term is 30 years. The longer the mortgage, the lower your payments will be – but, typically, the higher the interest rate, and the greater interest you pay. Where you can afford to, it’s a great idea to get a shorter mortgage – many young professionals are now opting for the 15-year variant, which CNN notes have lower interest rates. This means you own all of your equity sooner – creating flexibility for future properties.
While the difference between a 3% and a 3.1% mortgage might not seem like much, it really matters. Bankrate estimates the average US mortgage payment to be $1275 – over the life of a 30 year agreement, an extra .1% of interest will come to $15,000. Refinancing is a way around this, and CNBC notes a 9% rise in the amount of homeowners doing so in 2021. Make sure that your agreement holds as little interest as possible and works for you.
Whichever way you decide to go – long term or short term – shop around. Act assertively in obtaining a mortgage, but not recklessly. The mortgage system rewards patient consumers.