Why are interest rates important?

With low rates home buyers can lock in the interest rate for the life of their loan! This is something that is constant. Your interest rate effects your monthly payment for the next 15-30 years of paying off your home.

Last year, we saw rates mid 3s to 4s and now the average rates for a 15 year mortgage we have seen drop to the mid 2s. This is the lowest in a Freddie Mac data since almost 30 years ago! With low interest rates this lowers your monthly payment. Rates play a huge role in what you will pay over time.

What other costs effect monthly payment?

Don’t forget you have to pay property taxes and homeowners insurance as well, those numbers might fluctuate. The good news is property taxes can only increase 3% per year of the assessed value per year. Homeowners insurance varies by company but it is competitive. If you are near water you may need additional coverage like flood insurance only if required by the lender.

Also, you may need to pay private mortgage insurance (PMI) if you are putting less than 20% down of the purchase price. So if you are buying a home for $250,000, putting 15% down $37,500, you will see monthly amount due on your monthly mortgage statement in addition to principal, interest, taxes and insurance. PMI can be removed once you pay enough of the principal down. This will all make sense when you contact a loan officer to give you a loan estimate.

With rates this low, you will see significant savings, you may never have to even think of refinancing your home!

Are we still able to view homes in person with the virus ongoing?

Yes, with real estate being an essential business, we have not stopped working! Independence Realty Group LLC is still out showing property meeting your real estate needs!

National Association of Realtors have reported June’s pending home sales pace increased 16.6% last month and rose 6.3% from a year ago. Since the virus, this would be the second consecutive month of gains.