Shopping for a new home can come with a laundry list of questions about financing. WSFL-TV Trusted Advisors, Broker Patty Da Silva, and Realtor Chris Green of Luxury Homes by Patty Da Silva at Green Realty Properties, joined Inside South Florida to share tips to help you finance a new property.
“Interest rates have gone up quite a bit from where they were,” says Da Silva. “The higher rates make it more difficult for buyers. Buyers are searching for whatever they can as an alternative to paying 20% down to buy the home.”
An alternative to obtaining a lower interest rate is to purchase mortgage points.
“Points refer to you paying an amount to the lender upfront to reduce your interest rate. If you're going to stay in the home for a longer amount of time, that could be really valuable,” says Da Silva. “If you're going to sell in a couple of years, it wouldn't be worth it,” says Green.
There are various programs that may help you finance a new property.
“20% down is great because you don't have to pay the mortgage insurance. If you can't put that amount down, you can talk to a mortgage broker and see where you fall. FHA loans are also great,” says Green. “Another thing that you can do to lower your interest rate is obtain a 15-year loan. Your payment will be higher, but your interest rate will be lower,” says Da Silva.
For more information, visit PattyDaSilva.com
This Inside South Florida Segment is paid for by Green Realty Properties.
