Home loan interest rates, don’t worry about them so much. Seriously, don’t focus on them.

It is common for most people to focus on the home loan interest rate when thinking about the cost of owning a home.  Perhaps that is because the topic of interest rates is reported in news media a lot.  And that’s unfortunate.

By focusing on the interest rate, it is easy for us to misunderstand how our monthly home costs are calculated.  And that leads some people to lose out on moving, owning their next home or their first home, or buying their next investment.

Why not focus on the home loan interest rate?  Because there are multiple factors that contribute to the cost of owning a home.  That means there are other factors, besides the interest rate, that we may be able to adjust to lower our costs.

Here are some of the factors:

– The amount of money we borrow (size of the loan)

– Contract price for the home

– Property taxes

– Utility expenses

– Maintenance and Repair

– HOA and Condo fees

– Home loan interest rate

The interest rate is not the only factor.  Many people learn, happily, that they can lower some of these other factors to end up with a monthly cost they can handle.  Buying a home with a lower price may be possible in a different location, for a smaller home, or by negotiating down on the seller’s asking price. 

Property taxes vary by municipality or by county. Buying across the county line could save a lot of tax cost. Maintenance and utility costs may be less for a smaller or newer home.  HOA and Condo fees can vary widely as well. Consider buying a home that isn’t located in a community with an HOA or Condo Association and save that full cost.

Take a look at this video presentation for more information.  And check out more blog posts at https://veteranrealty.us/good-info-to-know/