Most real estate agents have experienced the frustration of seeing a buyer miss out on a home they loved because the buyer tried to negotiate $5,000 or $10,000 too much off of the price of a home. Of course, price is important, and no one will negotiate on your behalf harder than I when it comes time to buying a home in the Orlando area. But I also want you to know how significant the rate you pay on your mortgage has on your bottom line. It can demonstrate why rates are as important as price when buying a home.
Let's say, for example, you offer $190,000 for a home listed for $200,000. and your offer is accepted. Congratulations, you just saved $10,000.
Let's say you are able to get a $190,000 mortgage at a rate of 4.25% for 30 years. Your monthly payments would be about $935. Over the 30 years of that loan, you would pay back a total of $336,600. Now, if you could get the same loan at just .5% less at 3.75%, monthly payments would be about $880 per month. While that $55 difference per month may not seem like much, your total payments over the life of the loan would be $316,800. That is almost a $20,000 savings! That's worth celebrating!
The point is, if you want to get the best total “deal” on a Central Florida home, you need to shop around for your best mortgage rate as seriously as you look for a home. You also need a real estate agent who will work at helping you through every step of the home buying process.
In our next blog, we'll discuss why getting approved for a mortgage before house shopping can not only keep you within budget, but can save you even more of your hard-earned money.
Have a topic idea? Be sure to let me know!
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