Page 13 - July 2024 Issue

With all the online information available you should be be responsible for paying for the professional services of
able to get an idea of what a mortgage payment would be a realtor, which up this point was paid by the seller of a
based on an interest rate of 7%. In the old days (before property (see the June 2024 “Dollars and Sense where I
online calculators) I would give a very basic number to discuss this issue).
someone who wanted an idea of what a mortgage payment

would be. e factor per $1,000 borrowed on a rate of 7% At the very worst this will add thousands of dollars to the
is $6.65. buyers’ costs to purchase a home. Or it will reduce what
the seller will receive if you ask them to pay your buyer

To nd out what the principal and interest payment agent fee in your contract o er. Putting your o er at a

would be on mortgage at 7% you take the amount you competitive disadvantage against another o er that does
are borrowing, in this case let’s say $300,000. Multiply the not ask the seller to pay it.
loan amount in thousands (300) times the factor of $6.65
and you come up with a principal and interest payment Never in the nearly 45 years that I have spent in the real

of $1,995. To this you will need to add at least $300 per estate business, either selling or nancing, have I seen such
month for escrow for taxes and insurance PLUS additional a radical change in the residential real estate transaction.
mortgage insurance if your down payment is less than Now, more than ever you need a solid written loan

20%. e amount added to the principal and interest could approval, not a preapproval, to put your o er in the best
possibly be $400. possible position with a seller, regardless of who will be
paying the buyers agent. It can only be you the buyer, or the
If a $2,300 payment is more than you feel you can seller. e seller can only pay the buyer’s commission if you

reasonably a ord, and a payment somewhat lower than that ask them to do so in your contract o er. ey cannot pay it
is what you can “reasonably a ord,” do not get emotionally automatically like they previously did.

involved in buying a home at this time.
If you are considering purchasing a home and using a

If you can a ord a $2,300 payment, you will need to real estate agent, please reach out to me so we can discuss
get preapproved to see if you are quali ed for a $2,300 what options you have and what you can do to make your

payment, and which mortgage program will work best for position as a buyer look the very best to a seller.
you.

At this point most rst-time buyers will do what most
people do when they want to get information about a
service or product, go on the internet.

In a normal real estate market this is a ne option. But
there is nothing “normal” about the real estate market in
2024. Prices and interest rates are up and homes available
for sale are down. Current homeowners who are paying
3% or lower on their current mortgage will continue to sit
tight and stay where they are, unless they are in a position
to pay cash for the next home they purchase. ere is no

motivation to sell and give up a sub 4%, or in many cases
sub 3% interest rate.

And soon, possibly by the time you read this, buyers will

Janet Dove, stylist

920 Gay St., Denton
410-310-4586
Appointments ONLY!
Please call to schedule
CUTS COLOR PERMS HIGHLIGHTS

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