Image from the Philadelphia Inquirer Article by Michaelle Bond
Philadelphia Mortgage Shopping Tips: In today’s dynamic real estate market, characterized by surging mortgage interest rates, prospective home buyers in Philadelphia face a unique opportunity to make their homeownership dreams more affordable through smart mortgage shopping. Authored by Michaelle Bond, a staff writer for The Philadelphia Inquirer, the latest article delves into the powerful strategy of mortgage shopping in Philadelphia, revealing how it can lead to remarkable savings of up to $78,000 over the life of a standard 30-year loan.
Why Mortgage Shopping Matters:
With the average rate for a 30-year fixed-rate loan at 7.19%, the highest in over two decades, it’s vital to understand that the interest rate you secure can significantly impact your financial journey as a homeowner. The article offers insights into the various factors that influence your mortgage rate, such as credit score, income, savings, debt, and even your profession. Moreover, it highlights the fact that mortgage rates can vary substantially from one lender to another, making comparison shopping an essential step in the home-buying process.
The Potential for Savings:
Based on research by LendingTree, the online loan marketplace, the typical home buyer in the Philadelphia area has the potential to save approximately $2,600 annually. Over the course of a 30-year mortgage, these savings can accumulate to an impressive $78,000. The article explains how borrowers can explore two primary avenues for mortgage shopping: utilizing online loan marketplaces to compare mortgage offerings or directly contacting lenders to request their best offers. It also emphasizes the importance of ensuring that the compared mortgages are truly comparable, taking into account factors like loan length and type.
LendingTree’s study highlights that in the Philadelphia region, the difference in mortgage rates offered by various lenders averages around 1 percentage point. This translates to a monthly payment difference of $2,048 for the lowest average interest rate compared to $2,265 for the highest average rate. While Philadelphia ranks 29th out of the 50 largest metro areas for potential mortgage savings, it’s important to note that across these metros, borrowers have the opportunity to save an average of $84,301 over the life of a 30-year loan.
Don’t miss out on this valuable information that can help you navigate the competitive and ever-changing housing market. Read the full article authored by Michaelle Bond to empower yourself with the knowledge needed to make informed financial decisions. Your path to homeownership success starts with mortgage shopping. Read the full article HERE.
