Tag Archives: low mortgage rates

Who Is Responsible for Paying Real Estate Fees?

22 Monday Sep 2025

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When it comes to buying or selling a home, from a financial perspective, there’s more to think about than just the home price. There are a variety of fees associated with a real estate transaction—and, as a buyer or seller, it’s important to understand which of those fees you may be responsible for during the process. For instance, overlooking these costs can add thousands of dollars to your expenses unexpectedly, so budgeting ahead and negotiating strategically can make a significant difference in your bottom line.

Agent commission: Real estate agents make a commission off of every home sale; while commissions vary by agent, they’re often a percentage of the total sale price—a percentage that is then split between the buyer’s and seller’s agent. (So, for example, if the commission is 5 percent on a $400,000 home, that’s $20,000 total, with $10,000 typically going to each agent.) Generally, the sellers pay this fee when it’s subtracted from the proceeds of their property sale at closing. However, commission is always negotiable, and in today’s market, many sellers successfully lower the rate or structure it differently to save money.

Closing costs: Closing costs cover a variety of fees (like loan processing, title company, appraisal, title insurance, and government recording fees) that are due at closing—and generally run between 2 and 7 percent of the home’s purchase price. For a $400,000 home, that could mean $8,000 to $28,000 in total fees. Depending on the home sale—and the negotiating skills on either side—these costs may be covered by the buyer, the seller, or a combination of both. Sellers often offer to pay a portion as a concession to attract buyers, especially in a competitive market.

The Takeaway:

Agent commission: Real estate agents make a commission off of every home sale; while commissions vary by agent, they’re often a percentage of the total sale price—a percentage that is then split between the buyer’s and seller’s agent. (So, for example, if the commission is 5 percent, 2.5 percent would go to the buyer’s agent, and 2.5 percent would go to the seller’s agent.) Generally, the sellers pay this fee when it’s subtracted from the proceeds of their property sale at closing. However, commission is always negotiable—don’t hesitate to discuss options with your agent early on.

Closing costs: Closing costs cover a variety of fees (like loan processing, title company, and insurance fees) that are due at closing—and generally run between 2 and 7 percent of the home’s purchase price. Depending on the home sale—and the negotiating skills on either side—these costs may be covered by the buyer, the seller, or a combination of both. Understanding these upfront allows you to negotiate effectively and avoid surprises at the closing table.

We make sure our clients’ experience buying or selling their home is informed and stress-free, including clear guidance on fees and costs. If you’re interested in a hassle-free real estate experience, please get in touch today: Kevin and Jennifer Hanley, REALTORS 904-515-2479 The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside www.HanleyHomeTeam.com

Assumable Mortgages Are a Great Way to Get a Better Rate When Buying a House… If You Can Get One

25 Wednesday Oct 2023

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With mortgage rates hovering in the 7% range, being able to snag yourself a mortgage with a much lower interest rate probably sounds very appealing. This is why a new company called Roam has been all over the news recently, after recently launching a platform to help home buyers find mortgages they can assume for as low as 2%.

You’re probably thinking that sounds a little too good to be true, but certainly worth looking into if it’s even remotely possible. And you’d be right on both accounts.

Assumable mortgages aren’t a new thing; they’re no more available now than they were last week, last month, or last year. Roam is just trying to make it easier to find houses that are for sale and the owner has an assumable mortgage at an interest rate that’s lower than current market rates.

As you can imagine, they’d like to get paid for connecting you to a sweetheart mortgage rate. So be ready to pay them a fee of 1% of the mortgage you assume. For example, if the mortgage you assume is $400,000, you’d have to pay them $4,000, which isn’t bad considering the savings you’ll reap over the life of the loan. 

The real catch is that their service is currently only available in five states: Georgia, Arizona, Colorado, Texas, and Florida. So if you’re not looking to buy in any of those states, it’s no easier to find a house you can buy with an assumable mortgage. Even if you do, you’re probably not going to find an all-inclusive list of homes that you can buy with an assumable mortgage, because it’s new to the market, and it relies on homeowners registering their house on the site. 

You Don’t Need Roam To Buy A House With An Assumable Mortgage

Even though Roam may not be the solution for you that doesn’t mean you can’t find an assumable mortgage and buy a house at a lower interest rate! 

In fact, it may be better to do it without relying on a website with limited inventory. If you were to only focus on houses being listed on a site like Roam — even if they did service your area — there’s a good chance you’d be missing out on other houses on the market that you like more, or better fit your needs.

If you want to try and buy a house with an assumable mortgage, here’s a simple step-by-step approach:

  • Look for homes in your price range and find one you like. In other words, do what every home buyer does and just shop for a home you truly want.
  • Find out if the owner has an assumable mortgage. When you find one you want to buy, have your agent ask the seller’s agent if the owner has an assumable loan, and if they’d be agreeable to letting you assume theirs. Not all mortgages are assumable. FHA, USDA, and VA loans typically are (as long as both parties meet the criteria) but conventional loans — even if they’re backed by Freddie Mac and Fannie Mae — typically aren’t.Keep in mind that some owners may not be interested in going through the process or risk of working with a buyer to have their mortgage assumed, especially if they have other interested buyers who are going more traditional routes with their mortgage, or paying cash. They’ll also most likely expect you (and the lender) to sign paperwork releasing them of any responsibility to the loan moving forward, because even if you assume their mortgage, they’d still be responsible for the debt if you default.
  • Find out if the rate and terms they have are worth assuming. Just because they have an assumable mortgage doesn’t mean they have a rate or terms that would be agreeable to you! It may seem like every current homeowner has a 2% mortgage rate, but not all do. And while most terms of the mortgage are likely to be fairly boilerplate, you still should review the entirety of the terms of their mortgage before investing time or energy into assuming it.
  • Assess if it’s even financially doable for you. When you assume a mortgage, you take over the amount they still owe, not the purchase price amount. So, for example, if you were buying a house for $400,000, and the owner had a remaining mortgage of $100,000, you either have to have $300,000 cash to give to the seller, or take out a second mortgage to make up the difference. On the other hand, if you were purchasing for $400,000 and they still owed $360,000, then that’s equivalent to a 10% down payment which many buyers have and are expecting to put down on a house.
  • Make your offer contingent upon approval of the assumed mortgage. Just like any other mortgage, you’ll need to apply with the homeowners lender and get approved by them to assume the loan. So make sure you have a mortgage contingency in case you’re not approved by the lender.
  • Apply for the mortgage and go through underwriting. You still have to apply for the loan through the sellers’ lender and qualify and get approved by the lender, as you would with any other lender.

Trying to find a house that even has an assumable mortgage takes some effort, and there’s still no guarantee that the owner will agree to let you assume it, or that the bank will approve you. But it’s at least worth a shot if it means saving a lot of money on your monthly mortgage payments, and the life of the loan.

The Takeaway:

A new company called Roam recently launched a platform to try and connect buyers with sellers who have assumable mortgages, which aims to help buyers obtain a mortgage at lower rates than most loans are currently at. However, they only serve a limited area, and do not have an all-inclusive inventory of homes on the market.

Fortunately, you don’t need a company to help you find and obtain an assumable mortgage. You can always find out if the owner of a home you want to buy has an assumable mortgage, and if they’re agreeable to letting you assume it, you can apply for the mortgage through their lender. While it may take some effort, and there’s no guarantee that an assumable mortgage will be available on the home you truly want, it’s at least worth looking into in order to try and save money on your monthly payments, and the life of the loan.

Get in touch for more details about assumable AND low interest rate loans in today’s market. Kevin and Jennifer Hanley, REALTORs, SRES. Luxury The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

Are Mortgage Rates Back to “Normal”?

22 Wednesday Feb 2023

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If you think mortgage rates are at an all-time high, you wouldn’t be alone. According to this NerdWallet article, 61% of Americans think they’re “unprecedented.” And you’re also not alone if you’re still planning on buying a home this year, despite that sentiment, considering 28 million people plan to do so according to their survey!

The thing is, mortgage rates aren’t actually the highest they’ve ever been; not by a long shot. Those low rates buyers were getting over the past few years were historically unusual, and now they’re not just back to “normal”—even below normal—considering data from Freddie Mac shows that 30-year mortgage rates have averaged 7.75% over the last 50 years.

When rates were unusually low, it almost didn’t matter if you weren’t careful about the type of loan or terms you agreed to with a lender. But now that rates have crept up, you want to make sure you not only get the lowest rate you can, but also the best type of loan and terms possible.

So let’s take a look at 5 things you should do to make sure you get the best loan possible in this market, or any other market for that matter:

1. Get Pre-approved Ahead of Time

You should always get pre-approved before you actually start looking at homes you want to buy, but many people don’t. On the most basic level, doing so helps you know that you can actually get a loan, and how much you can afford to spend. That helps you to avoid the wasted time and heartache of finding a house you love, only to find out you can’t actually afford to buy it.

But beyond that, getting pre-approved ahead of time is a good chance to speak to a few mortgage professionals and get a feel for them, which leads to…

2. Find a Mortgage Professional You Trust

As with any profession, not all mortgage professionals are going to provide you with the best advice and service. Some will woo you with what sounds like the best rate, while glossing over other costly terms, or switching the rate on you at the last minute.

Look for one you not only trust is being transparent and honest about the rates and terms they can offer you, but who also takes the time to explain all of your options—even if their rate doesn’t sound as low as others. 

3. Choose the Type of Loan That Is Best for You

The historical rates mentioned above are based upon 30-year, fixed rate loans. Those are probably the “safest” and most predictable loans. But there are other options, like 7 or 15-year adjustable rate loans, which will usually have a lower rate, but may actually cost you more per month due to the shorter term of the loan, and the rate can go up after a number of years at a fixed rate. It could be a great way to save on interest and make more payments toward principal, if you know you’re going to sell or refinance before the rate changes. And who knows, the rates could be lower by then anyway.

Adjustable rate mortgages are just one example of the many different options you may have. If you choose a great mortgage professional to work with, he or she can help you analyze all of the different types of loans available to you, and help you figure out which one makes the most sense for your situation.

4. Don’t Stretch Yourself Financially

Just because you’re pre-approved for a certain amount doesn’t mean you have to (or should) spend every penny you can.

It’s not uncommon to be pre-approved for more than you may actually be comfortable spending per month on a mortgage. While a lender’s calculations should indicate that you can handle the payments on an ongoing basis, only you truly know your lifestyle and spending habits. 

Ask your mortgage professional to give you an accurate estimate of how much per month it will cost you, if you were to spend as much as you’re approved for. (And remember to factor in property taxes and insurance, which will vary from one house to another.) Then think about paying that amount every month. Is it something you’ll be able to comfortably swing? Will it impact the things you like to spend money on weekly, monthly, and yearly? 

You can also ask the mortgage rep to figure out about how much of a loan you should take on based upon a monthly payment you’re comfortable with, and use that as the top amount of your budget, even if it’s lower than what you’re actually approved to spend. And you can even try and spend less than that amount, if you want to really play it safe!

5. Shop and Negotiate for the Best Rate

While the rate isn’t the only or most important thing to consider, you should still shop around to make sure you’re getting the best rate possible. As mentioned above, when speaking with lenders, size up whether they’re being entirely honest and transparent about the rate and terms they’re offering.

If you get a better rate from one lender, see if the lender you trust the most can match it, or even beat it. But even if they can’t, keep in mind that it may be worth taking a slightly higher rate if you trust one lender above others who offer you a better rate.

The Takeaway:

Many people feel like mortgage rates are higher than they’ve ever been, but they’re actually not. In fact, they’re currently lower than the average rate over the past 50 years.

While being careful about the lender and loan you chose to go with didn’t matter as much when rates were unusually low over the past few years, now it pays to go back to basics and make sure you:

  • Get pre-approved ahead of time
  • Work with a mortgage professional you trust
  • Choose the best type of loan for your needs, situation, and qualifications
  • Avoid stretching yourself financially
  • Shop and negotiate for the best rate you can get

Let’s get started today! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside HanleyHomeTeam.com 904-515-2479

Should You Apply for an Online Mortgage?

30 Wednesday Sep 2020

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A mortgage is a big financial responsibility. Yet, if you’re like half of all home buyers, chances are you won’t shop around for the best mortgage. The result could be the loss of thousands of dollars…both in up front costs and in monthly payments. It pays (a lot) to shop around.

As a home buyer, you have three options for getting a mortgage: a traditional bank, a mortgage broker, and an online mortgage lender. Here’s a quick breakdown of the differences. 

  1. The Traditional Bank

A traditional bank offers in-house loans. You may get better rates and closing costs from your own bank if you’ve banked there a long time. On the other hand, you will only get the rates and terms they dictate, which might be limited. You probably won’t have a lot of choices. It pays to check at other institutions to compare the rates and terms of your bank’s offer. 

  1. A Mortgage Broker

A mortgage broker’s job is to act as your guide to helping you find a mortgage that fits your needs. The broker can shop around to find banks and other sources of funds that are the best rates and terms, based on your credit and income. 

Brokers are usually experienced loan specialists. Unlike big-bank loan officers, brokers will work with you to answer your questions and look for options. If you bring your big bank’s offer to a broker, he or she can compare for you. 

Brokers promote loan products that provide them with a finders’ fee. Since those fees are already built into the loan products (whether to benefit a broker or a bank’s own loan officer costs), you likely won’t see much of those fees passed on to you. 

  1. An Online Mortgage Lender

The great advantage to using an online mortgage lender is that you may get great rates and fees. Online lenders don’t have to cover a lot of overhead, so they can offer discounts to their borrowers through lower rates or closing costs. Even a quarter of a percent lower interest rate can potentially save you thousands of dollars over the life of your loan.

Another advantage is that you don’t need to talk to anyone. How convenient to have a burger, watch TV, and fill out a loan application all at once! Of course, convenience is also a big drawback. 

If you have a question, no matter how small, you won’t be able to get a quick answer, if at all. With online lenders, they will assign someone to work with you (a loan officer). That person has a huge work load and is often fairly inexperienced with nuanced questions. And in my experience, the questions are always nuanced. 

For example, take the question of assets and liabilities. Do you include your child’s college savings account? Is that going to risk you using that account if needed to pay for tuition next month? Should you include the fact that you’re on your nephew’s car loan, even though he’s paid it on his own for years and it’s almost paid off? Is your secret PayPal account going to show up on your assets, even if you don’t want it to?  

So Which Should You Use?

Use at least two sources. Make sure one of them is a mortgage broker. 

The Online Lender: If your situation is relatively straight forward…you have a regular job, a regular pay check, no weird debts or assets, then an online lender can be a great option. Make sure you read about warnings in the section below.

Big Bank or Credit Union: If you have a great relationship already, see if they have special rates and terms for long-time customers. In my experience, you’ll often end up in a situation similar to working with an online lender, because the bank is going to assign a loan officer, who may or may not be able to answer your questions. 

The Mortgage Broker: I highly recommend that one of your comparison points be a mortgage broker. Brokers are usually very experienced and can answer a lot of your questions. They’ll be able to shop around to find loans that might have comparable rates and terms to the ones offered by your bank or online lender. And they’ll let you know if your bank or online lender is a better deal. 

The biggest problem with applying to multiple sources is the fees. You’ll have to fill out the loan application multiple times, and your credit will be pulled multiple times, and you’ll have to pay multiple application and credit report fees. This is the reason most people don’t apply to multiple sources. However, you may be able to do a preliminary application, especially at the online sources.  Find out before completing the application if there are fees.

Warnings about Online Lenders

Most of them are not lenders at all. They might be brokers, they might “non-bank investment companies,” or they might simply be third-party comparison sites. There’s nothing wrong with any of these, but you should know what you’re getting. 

Lendingtree or Bankrate are examples of third-party comparison sites. They won’t give you a loan and can’t tell you which loans are best for you. They’ll simply show you funding sources that they have affiliate agreements with. You may find this useful for comparing different lender rates. Google “Mortgage Comparison Websites”.

Most online lenders are non-bank investment outlets. Quicken Loans or Meridian are examples. They’ll process your application and fund the loan using large institutional investor funds. They’ll likely sell your mortgage as part of a package of loans to other investors. There’s nothing wrong with this. It’s very common in the mortgage world. Before filling out any online mortgage application, check on the site’s credentials. You don’t want to start giving financial information online without vetting them first. Google “Non-Bank Mortgage Lenders”.

A few of the online lenders are in fact mortgage brokers, such as Intellimortgage. You’re simply filling out a loan application in advance, and they’ll consult with you to find you the best mortgage. I’d personally rather meet with a mortgage broker in person or talk by phone, rather than using an online mortgage broker. It’s just easier to get answers from a live person. Google “local mortgage brokers in (your location)”. Find a live person to talk to.

And of course, big banks like HBSC and Chase are online, too, so when you get a list of options from LendingTree or you Google “online mortgage,” there’s a very good chance you’ll simply be getting a bank. Double check whether the name of the company you’re shown in any online search or list is a bank, a non-bank, or a broker. 

Will Applying Ruin My Credit? 

It’s true that applying for credit can lower your credit score. However, when applying for mortgage loans for comparison purposes 2-3 times, your credit score will likely not be affected. Even if it is, it’ll usually only drop a little and only after you’ve already applied. If your score drops, a simple explanation that you were comparing lenders will suffice and your original rate at the time of application will stand.

Ask us for some recommendations for mortgage brokers in our area! Kevin and Jennifer Hanley, REALTORS http://www.HanleyHomeTeam.com 904-515-2479 Team@HanleyHomeTeam.com

Can I Buy Again? I Had a Short Sale A Few Years Ago.

02 Wednesday Jan 2013

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This month we’ll be reaching out to friends and clients who were swept up in the real estate downturn to check in and see how they’re doing. Many have been in touch recently about the possibility of returning to home ownership.

You might have some of the same questions they have. For instance: Can I get a mortgage? Have home values stabilized? Is it possible to buy again for what I’m paying in rent now? How can I be sure I won’t end up in the same situation?

The truth is, many people who lost their homes as little as two years ago may already be in a good position to buy again. Home prices and fixed-rate mortgage rates are quite favorable. There are many excellent homes on the market which can easily fit in a budget accustomed to current rents. Plus, it’s cheaper to buy than to rent in our area.

If you’re thinking about returning to home ownership, we’d be happy to answer questions you might have, and even connect you with trustworthy lenders who can help you navigate pre-qualification for an affordable home.

Why continue to tolerate the hassles of renting if you can transition back to a home of your own? Perhaps it’s time to say goodbye to absentee landlords, long waits for maintenance requests, and loud neighbors.

If you’d like to stop dreaming about it and start doing something about it instead, let’s have a conversation and see what we can do together to get you back on track for your own home. Kevin and Jennifer Hanley, REALTORS 904-422-7626 http://www.HanleyHomeTeam.com or http://www.HanleyShortSales.com