Making the Move During COVID-19
We are certainly dealing with a lot of uncertainty right now amid the COVID-19 pandemic. It has made us think twice about major decisions one of which may be purchasing a new home. I certainly don't have the answers or a magic ball to see the future; each person and family needs to assess their own needs and options carefully. If you are debating the decision to purchase a home, right now is an excellent time to check out mortgage rates. One local bank just posted rates for a 30 year fixed conventional loan between 3.125% and 3.25% with the higher rate reflecting no origination fee*. The 15 year fixed rates ranged from 2.75% (.875% origination fee) to 3.00% (.25% origination fee). Rates were equally competitive for FHA, VA and USDA loans. These rates can and will change quickly so my advice is to shop lending institutions for the best rates available now. Know that the rate is also tied to your credit rating. If a home is in your future and you are looking to obtain a mortgage, DO NOT make any major purchases (i.e., new car). Until you close on your new home, avoid these large item purchases - it WILL affect your credit. If you have great credit rating you will likely get a lower rate than someone with a less than stellar rating.
*origination fees - charges to a borrower to cover the costs of issuing a loan, such as credit checks, appraisal, and title expenses. Example: The lender issued a $100,000 dollar mortgage loan and charged a 1% origination fee ($1000).
Friedman, J.P., Harris, J. C., & Lindeman, J. B. (2017). Dictionary of Real Estate Terms (9th ed.); Baron's Educational Services, New York, NY.
If you are looking to buy, I would like the opportunity to assist you in finding your new home!