Solve the 1% mystery and SAVE MONEY on your New Jersey home purchase!

Solve the 1% mystery and SAVE MONEY on your New Jersey home purchase!

October 31, 2017

why the interest rate matters …

Buying, selling or just saving for the dream, at the top of your radar probably ought to be what the interest rates are doing as they absolutely will directly affect your real estate transaction.

One of the smarter moves you can make when you are ready to begin the purchase process is to take the time you need to shop around for your best mortgage deal.  Not every lender offers the same products, services or rates.

A little time spent could add up to big savings in the long run. Although a percentage point may only mean a slight variance in the monthly payment amount, take a look at what a tremendous difference just a 1% variance in the rate can make in the totals you will pay over the life of a loan:


why it matters to the home seller …

Mortgage loans and interest rates only affect the buyer of a house, right?  WRONG!  For a home seller, this information gives you negotiating power when considering offers to purchase your house.

Especially since any interest rate changes may completely change a buyers ability to close a purchase on time … or at all!

As these graphs illustrate, real estate transaction outcomes for buyer and seller can be greatly impacted with as little as a 1% change in the interest rate between the time an offer is accepted and the actual closing date.

why the interest rate matters if you’re just THINKING about buying …

These variables don’t just affect those directly involved in real estate transactions though!  When you are saving for down payment or closing costs in order to make your home owner dreams come true, those changes in long and short term mortgage rates also means changes to interest charged on credit cards and interest rates for your savings accounts.

the 1 piece of advice you MUST follow when getting ready to buy …


Most lenders will offer a rate lock for a specified amount of time, so even if rates do climb while you are conducting your search for the perfect new home, you can be confident of closing at the same lower rate quoted when you received your approval.

Your local marketing specialist can answer questions and advise what information you need to include with your offer when you locate the home you want to purchase.  In a situation with competing offers, strengthen your position by demonstrating you are a buyer who is ready, willing and ABLE to close the deal!


Give me a call or send an email if you'd like more detailed information on either selling or buying!

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