Mistakes San Diego Home Buyers Make That Increase Their Mortgage Closing Costs
Mortgage rates have an all-time low this year. However, even though many think this is a good thing – and it is, indeed –, numerous borrowers are faced with a strange phenomenon these days: parallel to the mortgage rates becoming more favorable, mortgage closing costs seem to be in a permanent hike. Actually, mortgage closing costs the owner about 6 percent more this year than it did in the same period last year and this figure can go even higher if the borrower fails to pay attention to certain important factors. In what follows, we would like to explore two of the most costly mistakes that borrowers can make – in other words, we will take a look at what not to do if you want to keep your closing costs as low as can be.
Not Taking Your Time
Many home buyers, especially first-time buyers, are very eager to get the deal closed, even if the terms of the deal are less than the best. Finding the most favorable terms does take time and you must shop around for the best loan, while taking into account not only the interest rate, but the other fees as well.
Not Doing the Math
Many borrowers make the mistake of not calculating their APR with sufficient accuracy. The effective APR is the abbreviation for Annual Percentage Rate – that is, the sum of money you pay each year for your mortgage. The sum is made up not only of your monthly rates, but also of the other additional fees, such as third party title insurance and origination fees. Therefore, you must be very careful when you choose the mortgage product and the lender in the first place.
Many lenders offer promotional mortgage loans every now and then. Usually, they make loans available for very low monthly rates, but they raise the closing costs. If you have a 30-year mortgage of $100,000, for a 3.85 percent rate and $1,300 in closing costs, the final sum you will pay back will be higher than having the same amount for the same period with a 4 percent rate and $800 in closing costs, even though the first option looks way cheaper at first glance.
If you are looking for the mortgage loan that offers you the best repayment terms, the best rates and the most affordable closing costs, the best and easiest way to avoid the hassle of reading through complicated legal texts and learning the complicated terminology of mortgage lending is by turning to reliable professionals. Maureen Martin is one of the best, most trustworthy loan experts San Diego has – whatever questions you have, you can either find the answer to it on the site or you can contact Maureen directly.
Whether you undertake the tedious task of finding the best mortgage or you take the easier and safer path of hiring a professional to find the solution for you, one thing is sure: your decision needs to me made with utmost care and attention, not forgetting that your mortgage is probably the largest debt you will ever carry – so there is no room for mistake!