Home buyers think a lot about the type of home they want to buy. They think about kitchens and backyards, how many bedrooms they’ll need, and the type of neighborhood they hope to find. But how much thought do they give their mortgage rate? Apparently, not much.
According to one new analysis, nearly 70 percent of buyers only submit one mortgage application and get one quote, potentially missing out on a better rate and savings. How much savings? Well, on the typical home paying November’s average rate, a buyer’s monthly mortgage payment would be about $2,345 per month. But if that same home were purchased with a rate 50-basis points lower, that buyer would owe $2,253 per month and save just over $1,100 a year. That may not seem like much, but it would make 22,000 more homes affordable at a median income.
In other words, home buyers who pay as much attention to their prospective mortgage rate as they do available listings will save money, expand the number of homes they’re able to afford, and get more house for their money.
[Source: PR Newswire]