When it comes to shopping for houses, we Americans love to look. But the nitty gritty details about how much we'll end-up paying? Not so much.
As the housing market heats-up in Cincinnati, a new poll by Zillow is showing just how much money we may be leaving on the table without even realizing it. When it comes to real estate, almost everything is up for negotiation. But it appears many Americans often just take what's offered when it comes to the mortgage their bank proposes.
In the poll conducted for Zillow, one out of three prospective buyers didn't know that fees lenders charge to get your credit reports and do an appraisal of the home are negotiable. 45% thought you should always buy mortgage discount points, when actually they're just prepaid interest. So if you're not going to stay in a house for many years, you may not break even.
"Most people wouldn't jump out of a plane if they didn't know how to use a parachute, yet each year many buyers commit to the largest loan they will take out in their lifetimes without understanding essential information about mortgages," Erin Lantz, director of Zillow Mortgage Marketplace, was quoted as saying in a press release about the survey.
55% of prospective home buyers didn't know that mortgage rates vary throughout the day, just like the stock market. So you need to keep on top of them throughout the mortgage process. Various websites offer to track mortgage rates on a daily --- or even more frequent --- basis including Zillow, Bankrate, and Mortgage News Daily.
Plus, be sure to use a mortgage calculator to make sure you can afford that monthly payment.
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