Here's a fact that may surprise you: Interest rates are not given to you. You pay for them.
Here are 4 things you need to know when determining if your mortgage is best suited for you.
1. Interest Rate
2. Annual Percentage Rate (APR)
3. How long you plan to keep the house.
4. How long you plan to keep the loan.
Example: $300,000 loan.
EXAMPLE 1: ABC Bank "OFFERS" 4.625% at a cost of 2 points. This means you're paying $6000 MORE AT CLOSING.
*APR - 6.296%
: XYZ Bank "OFFERS" 5% with 0 points. This means your paying regular closing costs; no extra money needed for closing.
* APR = 5.834%
A lower APR means you're paying less to obtain the loan. That's a good thing.
However, another consideration is how long you plan on staying in the home and keeping that loan. In the example, the difference in monthlymortgage is $75. Does it make sense to pay the $6000 for the lower interest rate?
$6000 divided by $75/month = 80 months
YES, it makes sense IF you plan on keeping the home and loan for more than 80 months
NO, it does not make sense IF you plan of refinancing or selling prior to 80 months.
Bottom line: There's is not a "one size fits all" approach to mortgage financing.
Call me at 443-416-1984 to review your situation and we'll come up with a plan together.
#approvedwithayla #hellohomebuyers #livelaughlove
Himalayan "ice" quartz with chlorite and anatase from the Kullu district, Pradesh, India. I love that the crystals fit like puzzle pieces and you can see all the growth lines.
Available, $70 shipped in the US
A bunch of firefighters in town for a conference from all over the country got together, backing up the teachers on strike in LA for now their 6th day
The teachers striking are from the country’s second-largest district, asking for more money and smaller class sizes