Research has shown that most people spend more time shopping for cars than considering mortgages. As a result, many people seeking to buy homes end up paying more in closing costs or a higher interest rate than they might have because they didn’t do enough research or didn’t adequately shop the mortgage market. The real estate mortgage interest rates can move up and down quickly due to various financial and market factors. The ever-changing rates can confuse almost anyone, and timing is essential. For instance, the rate might be 5% one day, and the following day, it could rise to 6%. Many people overlook the shopping aspect and tend to approach a single lender. As a result, these people will probably get their “dream” home, but it may come with a substantially higher monthly mortgage payment than if appropriate and adequate research had been done.
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