Owning your own home is probably one of the biggest investments you will ever make in your lifetime. While I help with the buying and selling side of things, there are other areas that need taking care of before the deal is final. Today I have asked our Mortgage Specialist here at Re/Max, Rhonda Lorimer, to give us a little insight on the mortgage side of things. Please welcome my special guest, Rhonda.
Thanks for having me Mary-Lou. As most of you know, part of buying or selling a home is the mortgage and the pre-approval process. Before the transaction goes through on the sale of a home, we have to make sure all finances are in place.
Is it time to renew or refinance your mortgage? If you just said "Yes", then we need to talk.
In the present market, we are experiencing historically low interest rates (many factors do contribute to this, however, our current pandemic could also play a part). Fixed term rates have never been lower and we may see a rise in rates in the latter part of 2021. It will likely take a little time, as the economy slows to recover post pandemic.
Also, it is an important part of homebuyers planning to have all your financial matters organized and obtain a pre-approval in order to start looking for your forever home. These days, with the competitive market, REALTORS® want to ensure you have been pre-approved before making an offer.
With Mortgage rates at an all time low, NOW is an excellent time to assess your renovation projects, to take advantage of your homes equity. Maybe it's time to renew at an amazing rate if your current mortgage term is maturing. My lending partners will hold interest rates for 120 days!
Now, let's say you would like to buy a home for $250,000. I have created a mockup of the mortgage break down over 25 years at different percentages. Some new home buyers may have questions regarding the process so here are a few key questions that you as a new homeowner may potentially ask:
- How much of a mortgage can I afford based on my particular situation?
- How much do I need to save for a down payment on a purchase?
- What are the closing costs, and what is the expected amount I should save? (Deed transfer tax and legal costs, conservatively 3% of purchase price)
- What should I take in account for the future? (What you can afford today, may differ if you had a reduction of earnings)
- What type of mortgage is best for me? (A fixed term, adjustable rate mortgage or variable?)
I just want to say thank you to Mary-Lou for having me as a guest on her blog today and if any of you need answers to any of the questions or further information regarding mortgages, I'd love to hear from you. Thanks again Mary-Lou. Cheers!
There you have it folks. There is more to buying and selling a home than meets the eye. From mortgages to inspections - it is a process and a team effort. Thanks to Rhonda for her expert advice today and thanks to all of you for reading. If buying or selling a home is in your future, please check out my previous blogs regarding the offer process as well as decluttering your home and home staging.
Until next time - Keep it "REAL" - The BEST is the LEAST I can do!