Buying a house is an emotional purchase. And in terms of setting up your mortgage, you may have to give up a little on one to give more to the other. In this episode, our hosts walk us through the financial details including costs, rates and monthly payments to equip you to home ownership confidence.
Buying a house is an emotional purchase. And in terms of setting up your mortgage, you may have to give up a little on one to give more to the other. In this episode, our hosts walk us through the financial details including costs, rates and monthly payments to equip you to home ownership confidence.
“Rate, cash to close and monthly payment – those are the numbers people tend to focus on and they have to work together to find your mortgage sweet spot.”
The key is to find balance in those numbers that make you comfortable in the purchase of your home. Lower rates do not equate to better rates – Andrew and Kevin are professional guessers. A lot goes into the rate percentage and we are so conditioned to lower rates through advertising. Closing costs can also add up to be a considerable part of your loan, and include variables such as prepaids (insurance, property tax, etc.), all county related fees, and title fee. Most people don’t anticipate this in their loan, and it can be a shock.
You must determine the sweet spot for yourself - is the out-of-pocket monthly payment or rate most important? Figure out your sweet spot and how it directly relates to cash to close is crucial - what is your monthly payment desire? The best way to get a starting point for these numbers is to base it off how much you’re paying rent right now and surround yourself with a great team in the process.
“The team you surround yourself with will make or break the deal; I promise you.”
Andrew Karam: website | facebook | linkedin | instagram | book a call
Kevin Booth: website | facebook | linkedin | book a call