(PRWEB) September 21, 2012
Average mortgage rates dropped in the second consecutive week nearly reaching to record lows on July 26 this year. According to the latest report from Freddie Mac on Sep 13, the average rate on 30-year fixed-rate mortgage declined to 3.55%, holding steady from the previous week and down 11 basis points from the August peak of 3.66%. The average rate on 15-year fixed-rate mortgage remained unchanged at 2.85% after sliding 1 basis point for the week of Sep 6th. With such a low mortgage rate today, it seems that it is the right time to get a new house for American homeowners. Mortgage experts from Mortgage Hands, one of the leading mortgage companies in the United States, shared their views and suggestions on how to reduce fees and charges during the home buying process.
“Average mortgage rates are low currently. For potential home buyers, buying a property sounds great. Yet, low mortgage rates do not represent all things. To get the best deal with the lowest fees and charges, there are a lot of things one should take into consideration,” said a mortgage loan specialist from Mortgage Hands.
Mortgage home buyers must understand that getting the right mortgage loan option is not so easy and learning some simple ways to drastically cut down the fees and charges associated with buying a house is essential.
Mortgage Hands experts suggest home buyers check out all costs of home buying and ask if these costs can be reduced or removed all together. “For instance, Mortgage Hands will cover the fees of the appraisal, saving the clients two to six hundred dollars on their budget,” said the expert.
The experts also advise home buyers to get a good understanding of what the Good Faith Estimate (GFE) is and hold the lender to it. The Good Faith Estimate, also known as the GFE, is an estimate of the costs associated with the mortgage you are applying for. The document requests that the lender must keep the disclosed fees to within 10% of what are stated on the estimate. By law, the lender has to provide you with this estimate within three business days of the mortgage application. Some lenders may offer you a very low quote for all the fees and charges at first, but they finally ask for more than what expected. So, it is wise to hold the lender to the initial GFE.
There are also many other additional fees associated with home buying one should pay attention to. For example, the costs of recording, closing costs. The costs of recording vary from different states, but no matter which state you are in, you should only pay for the recording per page. Ask the escrow officer to make adjustment to the costs of recording when needed. Closing costs usually cost you thousands when you are paying interest on them. Counting the cost when purchases. Unless you get a USDA loan, you will have to pay the costs at the closing table. Yet, you can wisely use a mortgage company to help you take off some of the closing costs by working with the title companies the mortgage company partners with.
When shopping for a mortgage loan, home buyers cannot excessively rely on the mortgage company although most of the companies do help to find out the best deal. Get a good understanding of all the fees and costs of home buying is greatly essential.