Is this the right time to buy a house? Should I wait for the rates to drop more? What other monthly expenses are there when I buy a house? Buying a house is not just mortgage and interest payments . Learn what other expenses you need to factor into your housing budget before you make that offer.Transcript of video:
yes interest rates are historically low how much buying power do you actually
get that's the topic of my next video mortgage rates at a 50-year low that's
right i'll say it again mortgage rates at a 50-year low what
does it mean for you mr buyer and seller that's the topic of
today's video hello everybody my name is Mark Schreier and i'm a licensed sales
associate with Century 21 American Homes Real Estate
right here on sao said long island if you're new to my channel thanks for
stopping by please don't forget to subscribe and
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content oh and don't forget to leave some comments
about today's video topic as well interest rates
30-year low um excuse me 50-year low hard to believe
that's right 50-year low what does it mean for
you well first let's take a look and put it in some perspective
back in the 1970s and check out this infographic
right here in the 1970s the average mortgage interest rate was eight
point eight six percent on a three hundred thousand dollar house
you were paying almost twenty four hundred dollars a month
23 84 to be exact fast forward all the way down to 2010
mortgage rates four point zero nine percent on a three
hundred thousand dollar loan your average
monthly expense was one thousand four hundred and forty eight dollars
hovering at three percent 2.96 percent the mortgage rates this is from freddie
mac by the way 30 year fixed your mortgage rates 2.96 percent
1 258 that is a significant difference so what does it
mean for you the buyer and seller well for the buyer you get more buying
power for the seller you get people with more buying
power making offers on your house driving the prices
up and you might say it's a wash and in some regards it might be
depending upon how over inflated your prices become
on the property and how much of a deduction
or reduction the buyer gets on their mortgage rates but more money
is in play everybody has more money to play with and that's a wonderful thing
so definitely give me that thumbs up if you're thinking about it right now
because this is a great time to be a seller for
sure and also a great time to be a buyer
because you have more buying power moving forward
now the negative is we are still in the midst of a pandemic
yes the coronavirus pandemic we're right now in
august of 2020 so that has an effect on a lot of people's finance so with that
being said you need to know your numbers if you aren't sure and you're shopping
for a property the last thing you want to do is
make an offer on a house and find out it wasn't accepted
because financially you didn't present it in the best
light so what do i mean by that if you are financially
set to make an offer of whatever dollar amount you did but you didn't prepare
the package right to give to the listing agent or if it's
a for sale by owner to the owner of the
house then you're doing yourself a disservice and i'm going to include a
video link in the comments below on what are
the advantage of a buyer broker in this market you're going to need them
also with that being said this is not a market for people who are thinking about
low balling offers the houses are gone the second
they go on the market so if you're gonna low ball you're
wasting everybody's time if you're serious about buying
this is the market for you you can find a house
is going to take a little more time of course it is i will have a professional
working for you and yeah i'm biased i am a realtor
but i will tell you this is the market you need a professional working in your
corner to get those properties before other
people do it and also to coach you on how to set up
your offer package not just the dollar amount but how to get everything
together so when you present that package it
actually has an impact on the listing agent and the owner of
the property with that being said we're talking about
numbers on in a buyer in a seller's market that we're in right now
like i mentioned earlier you can have bidding wars
so besides numbers it's the terms and that's where presenting the package
in a very good fashion with all the documents needed
and disclosures will help your presentation
also understand besides just buying the property being pre-proved
pre-approved for a number you also have other expenses you need to
take into consideration that you missed a buyer are required to
pay every month besides your principal and your interest
you have taxes on long island our taxes are not cheap
know what the taxes are on the market that you're shopping
in and make sure you add that to your specific property
monthly bill i wouldn't say just look at the listing and i see what the taxes are
no double and triple check that with the public records or the
tax clerk for your specific town that you're buying in
call your county call the town hall or speak to a realtor and find out where
you can get those numbers insurance property insurance homeowners
insurance in order to get a mortgage you need to have homeowners insurance
know the number know the type of insurance you want know much
know what you need and speak to a insurance professional to find out all
the different types of insurances that are also available for you
if you live in a flood zone and i'm also going to include a link about
buying a house in a flood zone how do i know if i live in a flood zone
there's no way this house can be in a flood zone because there's no water
around here wrong that's not the way there are
believe it or not canals and things that are affecting
your property if there's ever a flood you need to do the research and find out
for sure if your house is in a flood zone and if
so what you can do or how much is your
flood insurance going to be so the acronym is pity and
in this case it's going to be two types of insurance for principal
interest taxes insurance and if need be flood insurance and that
is not counting all the other um things that you can't you know
predict like you might have a leaky roof in a
couple of years that you need to fix you might have other things your air
conditioner breaks you didn't expect that
all these incidentals now i'm not trying to say home ownership
is not a good thing it's a great thing to own your own property to own your own
land but there's definitely upkeep and i
would be misguiding you if i told you it's just
basically your mortgage payment and you're good
that's not the case and don't let anybody fool you and tell you otherwise
if you have been pre-approved and you're ready to make a move and you have spoken
to your financial professionals and you know your dollar
amount jump into the market it's a great time
to buy and it's definitely a great time to sell
i hope this video is helpful don't forget thumbs up
if you enjoyed the content hit the button on the bottom to
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my name is Mark Schreier i'm a Licensed Sales Associate with Century 21 American
homes and thanks for watching
you
