This article is brought to you by Chase, with insights from Everything Finance.
Most people think that spring is the best time to buy or sell a home. This belief is rooted in both practical reasons and some old misconceptions about the housing market. In spring, many folks are eager to get outside after a long winter, which fits well with moving plans, especially if you have kids in school.
Interestingly, a survey by Chase found that many Americans are planning to jump into the home buying market this summer. But how prepared are they when it comes to understanding mortgage details?
Interest rates have reached 4% for the first time since November 2014, sparking talks of further increases. So, if you’re looking to save, now might be the right time to buy. The difference between a 4% and a 5% interest rate on an average 30-year mortgage could save you almost $60,000!
While interest rates are crucial, many potential homebuyers forget about other important costs. For instance, home inspection fees are necessary to avoid buying a problematic property, and property survey costs are required by lenders. Don’t forget to also set aside money for upfront tax payments during closing.
There are several fees to consider at the closing table too, including government recording fees, appraisal fees, credit report fees, title services and insurance, flood certification fees, tax service fees, and a lender’s origination fee.
You should also think about homeowners’ association dues, insurance premiums, and possible expenses for home improvements and new furniture. Moving itself isn’t cheap either. Packing, storing, and transporting your belongings can add up, especially if you’re moving across the country. Even local moves can be costly, with expenses for truck rentals, moving services, and equipment.
When you move into your new home, consider the costs for setting up utilities like phone, electricity, gas, and water. These can become significant, particularly if you’re moving into a larger place or transitioning from renting. You might also need to buy new furniture or appliances to make your new space feel like home.
Be sure to budget for ongoing maintenance and any potential renovations, like painting, roof repairs, or fixing plumbing and wiring. It’s recommended to save at least 1% of your home’s purchase price each year for these expenses. This amount may vary depending on the age of the house, the previous upkeep, and the local climate.
Chase provides a wealth of resources for prospective homebuyers. For more information on home buying and mortgage calculators, visit chase.com/homebuyers. You can also check out helpful videos on the Chase YouTube channel.