Record low interest rates are helping to spur a little bit of a housing comeback. Who knows whether the comeback will last but one this is for sure: record low interest rates are helping create a ton of buzz in the residential market. However, consumers must be aware that what you see advertised may not necessarily be the case and buyers should be aware of mortgage fees that could bump up their monthly payments.
Those that provide homebuyer education stress that fees can make a considerable difference in the cost of a home loan, and that buyers should be educated on how they impact a sale. Savvy individuals should look not just at the interest rate, but also at the APR, or annual percentage rate.
Consumers should also be aware that many of these fees are negotiable. While closing procedures differ in every region, some fees can be paid by or split with the sellers, according to The Federal Reserve Board.
If you have any further questions about this topic, please feel free to call our office at 310-255-3447.