uyers need to reserve the equivalent of about 2 percent to 5 percent of a home’s purchase price for closing costs, such as appraisal, lender, and title fees. But that’s only a portion of extra home ownership expenses.
Nearly half of home shoppers say they faced more than $2,000 in unexpected charges during the homebuying process, according to a survey by TD Bank. Ten percent spent at least $5,000 more than they originally expected. So make sure your clients are aware of these extra expenses.
Home inspection fee. Home buyers will want to have the home evaluated by an inspector prior to closing, which may cost about $300 to $500. If any problems are detected, they also might need to hire a specialist for further investigation.
Extra cash at closing. Many lenders require purchasers to pay a year’s worth of taxes or the equivalent percentage of the mortgage upfront. The seller may have prepaid any taxes or homeowners association fees ...

Mortgage rates declined last week to their lowest level in 2017, a move that could help fuel buyer demand at a time when the supply of homes already is under strain.


The rate for a 30-year mortgage fell to 3.88% in the week ended Thursday, down from a week earlier when it averaged 3.9%. That was well above a year ago, when it averaged 3.48%.


Economists had widely predicted mortgage rates to rise to around 4.5% by the end of this year. That looks increasingly unlikely. Dimming prospects for the Republican legislative agenda, especially tax reform, have helped keep a ceiling on rates.

Recently, Freddie Mac reported on the benefits of home ownership. According to their report, here are the five benefits that “should be at the top of everyone’s list.”
 

 Home ownership can help you build equity over time.
 Your monthly payments will remain stable.
 You may have some tax benefits.
 You can take pride in ownership.
 Home ownership improves your community.

Let’s expand on each of Freddie Mac’s points:
Home Ownership can help you build equity over time.
Every three years, the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).
In a Forbes article, the National Association of Realtors’ (NAR) C ...