We’re still in a low interest rate environment. According to data released by Freddie Mac, rates dove back down to 4.45% with an average of .5 point. Fears of the government shutdown, stock market volatility, and economic uncertainty are the primary reasons why mortgage rates have declined in recent weeks.
How can you use this information to your advantage? Here are a few recommendations...
Talk To A Realtor
One of the first steps to the home purchase process is to hire a Realtor. Your Realtor can explain:
- What the local housing market is like.
Your agent can provide local information on utilities, zoning, schools, and more. They also have objective information about each property. In addition, your agent can use that data to help you determine if the property has what you need.
- The purchase process.
Buying a home can be complex. There are multiple steps and numerous documents you have to sign. Working with an experienced agent can help you navigate through all of this.
Unless you’re getting the friend-and-family deal, it’s probably in your best interest to stop renting. Why? Your rent is paying someone else’s mortgage. Let’s say you’re renting a 1-bed condo in Kaka’ako for $2,200/month. That’s $26,400/year and $79,200 over three years.
Did you know your mortgage payment for a $400,000 purchase would be approximately $2,200/month if you were to put 15% down with a 4.45% interest rate? Ask your Realtor if he or she can recommend a mortgage lender. It doesn’t take much effort to get prequalified.