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| LIFE IN SOLERA | OCTOBER 2023 | 13 Mortgage rates are currently hovering near seven percent. Home buyers have adjusted to higher borrowing costs and home prices. Still, affordability is a big issue. However, there are ways buyers can save on their mortgage. Buyers are eligible for the lowest mortgage rates with a stellar credit score, particularly above 740. But there are additional ways to save, including: 1. Shop around for a loan. Gathering multiple mortgage rate quotes from lenders can pay off. A recent study from Lending Tree shows the average borrower could save $84,301 over the life of their loan by shopping around for a mortgage. This translates to $2,810 a year and $234 a month! Buyers should compare interest rates, terms and additional fees – not just who has the lowest rate. 2. Negotiate. While 63 percent of home buyers say they have negotiated for home price reductions, only 39 percent of buyers say they've tried to negotiate the initial APR. Yet, those who've tried to negotiate on their mortgage have found a 80 percent success rate. 38 percent of buyers negotiated on closing costs, which are the fees lenders charge to process a loan. 3. Buy down the mortgage points. Borrowers may want to consider buying down points – typically done in 0.25 increments – to reduce the interest rate on a loan. Mortgage points are the fees borrowers pay a mortgage lender to reduce the interest rate on the loan. Lenders can help calculate the break-even point to see how long you'd need to stay in the home to make it worth paying upfront points. 4. Ask for discounts. If you are already an existing customer who banks with a lender, ask about "relationship discounts." For example, a bank may waive a loan processing fee if you have a minimum amount of money deposited or in an investment account. 5. Be aware of float-down policies. Mortgage rates can fluctuate over the course of the closing timeline, and every swing can make a difference. Many lenders will allow you to adjust your rate downward if there are significant changes in the market rate while you are in the process. Asking about these policies upfront will ensure you know the requirements to get your rate reduced and protect you from paying a higher rate than you should. 6. Consider the mortgage terms. The 30-year fixed-rate mortgage is the most commonly used type of loan, but some lenders may offer even longer terms, like 40-year mortgages. Borrowers can then save on their monthly mortgage payment by extending their mortgage term – but that also means they will pay significantly more in interest over the life of the loan. Lenders may be able to offer other types of loans to help lower the monthly payments. For example, adjustable-rate mortgages have been surging in popularity as 30- year rates edge higher. For home buyers who may be trying to "time" the market and snag the best interest rates, real estate has adopted a new mantra: "Marry the house, date the rate." Buyers may be better off committing to the home they will love long-term regardless of current rates, and plan to refinance later should interest rates drop. Source: www.nar.org September, 2023 Six Ways Buyers Can Save On Their Mortgage By Glenn and Nona Bradd, Associate Brokers and Residents

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