Because rates on 30-year mortgages have fallen to record lows, you mustn’t wait to buy your new condo
Rates on 30-year mortgages have fallen to record lows for the third consecutive week
Mortgage rates have fallen again! This week’s average of 3.03% for a 30-year loan is down from last week’s 3.07%
The following is an article published by the Florida Association of Realtors newsletter today:
“BALTIMORE (AP) – Rates on 30-year mortgages have fallen to record lows for the third consecutive week as inflation remains muted in a weakened economy – even in the face of persistent demand from homebuyers.
Mortgage buyer Freddie Mac reported Thursday that the average rate on the key 30-year fixed-rate mortgage declined to 3.03%, down from 3.07% last week and 3.13% two weeks prior. These were the lowest levels since Freddie Mac began tracking averages in 1971. The rate averaged 3.75% a year ago.
The average rate on the 15-year fixed-rate mortgage also dropped to 2.51% from 2.56% last week. That average is down from 3.22% a year ago.
Rates are making homes more affordable as potential buyers, who had been shut in, appear to be returning to the market. Pending home sales jumped a record 44.3% in May as a comeback appears to be building in the sector, according to the National Association of Realtors®.”
What do you care about this news?
Well, if you are currently renting a condo in Brickell, you could be saving some money if you decide to purchase instead. Low mortgage rates equals lower monthly payments and remember, it is a fixed interest rate for 30 years!
Estimate your monthly mortgage payment with our super easy mortgage calculator.
Purchasing a home is the largest investment for most people and it could be intimidating. However, investing in real estate is also the most secure investment ever known. There is a famous quote by John Paulson that I’d like to share with you:
“If you don’t own an home, buy one. If you own a home, buy another one. If you own two homes, buy a third.”
To buy a condo in Brickell and finance it, the lender will typically ask you for 2 years of income taxes, 3 to 6 months of bank statements showing that you have the funds for the down payment and proof of income (pay stubs, direct deposit, etc). They will give you a pre-qualification letter after checking your credit and analyzing the rations between your income and expenses.
Even if you are the perfect candidate for a mortgage loan, the real estate property must also be evaluated since it is the collateral for the loan. Mortgage lenders require a “condo questionnaire” from the condo association.
They want to know if there are pending litigations against the association, upcoming assessments, amount of reserves, ratios between owner vs tenant-occupied units, among other things. Based on the answers, the lender may or may not approve the building.
The lists below show some Brickell buildings that have been evaluated by a lender and can be financed with either 5% or 10% down payment. The list has been provided by the lender and it is not guaranteed since some changes in the building’s financials or legal situation could affect the building’s qualifications.
