09/27/2023
Rates are always a hot topic in the real estate world, but they shouldn't be the only thing that drives your decision to purchase a home.
There are two tangible pieces for every buyer to consider: total money out of pocket and monthly payment.
Total money out of pocket includes your down payment and closing costs. Talk with your loan officer to discuss what options you have and what you are most comfortable with. Does it make sense to bring more money to the table? Can you afford just the minimum down payment at this time? What advantages/disadvantages come with each of these options? This will help to determine which type of loan makes the most sense for you and directly impacts your monthly payment.
Monthly payment is what you will need to budget for every month and includes your principal, interest, taxes, insurance, and PMI (if applicable). Why is it important? Let's look at what you have been paying for rent or your previous home. How will the new mortgage payment fit into your current budget? What other expenses do we need to consider while owning a home? While interest rates can affect this number, as they start to decline you can refinance in the future to reduce your monthly expenses.
Let's stop focusing on interest rates and have a conversation about what's really important to home buyers. Call/text me to learn more!