We are always thrilled to hear when folks make the jump to home ownership. And it’s important for prospective homeowners to know about all the resources available to them to help the experience go as smoothly as possible, especially when it comes to financing.
Earlier this year, the U.S. Consumer Finance Protection Bureau (consumerfinance.gov) released a report with some revealing data – particularly that almost half of consumers do not shop around for a mortgage when purchasing a home.The report highlights the fact that informed consumers are more likely to shop, especially if they are familiar with available mortgage rates. As part of its “Know Before You Owe” mortgage initiative, the CFPB also announced it was releasing “Owning a Home,” an interactive, online toolkit designed to help consumers as they shop for a mortgage.
Upon reviewing the findings, CFPB Director Richard Cordray noted that consumers put great thought into the choice of a home, but the mortgage process continues to be intimidating.
In this report, you will find details of some of the key data coming out of this study, and how to apply the information to your own home buying experience.
First and foremost, failing to shop means money lost – and consumers who consider the product offerings of multiple lenders or brokers may save substantial sums the report finds.
For example, interest rates can span more than half a percent for a conventional mortgage for borrowers with a good credit rating and a 20 percent down payment. For a borrower taking out a 30-year fixed-rate loan for $200,000, getting an interest rate of 4 percent instead of 4.5 percent translates into almost $60 saved per month.
Over the first five years, the borrower would save about $3,500 in mortgage payments. In addition, the lower interest rate means that the borrower would pay off an additional $1,400 in principle in the first five years, building greater equity.
Some of the topics covered in this report are:
Starting to think about buying a home?
Getting ready for closing?
At Long Lake Ltd., we understand that buying a home for the first time can be overwhelming. It’s a big decision and you probably have a lot of questions. Let Long Lake, Ltd. answer your questions and help you realize your dream of home ownership.
We’ll walk you through the loan qualification process, help you find the perfect home for your family, and be right there with you at every step of the way. Long Lake, Ltd. has been helping first time buyers become happy homeowners since 1997.
Contact us today to find out how we can help you with affordable homeownership.