How to save thousands when you purchase a home

How to save thousands when you purchase a home

 

Obtaining the best price is not the only way to save a lot of money when purchasing a home. Selecting the best mortgage financing can save thousands of dollars when home buyers focus on the best options.

Mortgage interest rates are at the lowest levels for 2014 and all of the regular rates are attractive. However, if you can handle a 15 year mortgage rather than a 30 year mortgage, the savings are in the thousands of dollars and the obligations will end at an earlier date.

If you are only expecting to be in the area for five years or less, there are even more money saving options with adjustable rate mortgages. This is not rocket science. Don’t select the 30 year mortgage if other programs will satisfy your family needs.

 

Freddie Mac reports the following mortgage rate national averages for the week ending Aug. 21:

  • 30-year fixed-rate mortgages: averaged 4.10 percent, with an average 0.5 point, dropping from last week’s 4.12 percent. Last year at this time, 30-year rates averaged 4.58 percent.
  • 15-year fixed-rate mortgages: averaged 3.23 percent, with an average 0.6 point, dropping from last week’s 3.24 percent average. A year ago, 15-year rates averaged 3.60 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.95 percent, with an average 0.5 point, dropping from last week’s 2.97 percent average. Last year at this time, 5-year ARMs averaged 3.21 percent.
  • 1-year ARMs: averaged 2.38 percent, with an average 0.5 point, rising from last week’s 2.36 percent average. A year ago, 1-year ARMs averaged 2.67 percent.

Source: Freddie Mac

 

 Photo: Butterfly, Butterflies Live! Exhibit, Lewis Ginter Botanical Garden, IMG 0973

Butterfly, Butterflies Live! Exhibit, Lewis Ginter Botanical Garden, IMG 0973

Photograph by Roy Kelley

Roy and Dolores Kelley Photographs

Roy and Dolores Kelley Photographs

Roy Kelley, a real estate broker since 1960, has retired from his position as Associate Broker with RE/MAX Realty Group in Gaithersburg, Maryland. The needs of past clients and referrals will be met by long time associates. 



12 commentsRoy Kelley • August 22 2014 10:30AM
How to save thousands when you purchase a home
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