Our loan officers at Cleveland Mortgage Corporation are frequently asked about Cleveland mortgage rates. Whether it be at family events, networking events or even out with friends, when you’re a mortgage broker in Cleveland, the first question people seem to ask is “what are your mortgage rates?” The person asking is usually proud of the mortgage rate they have and looking for validation that their mortgage rate is still the best. However, lately we’ve been talking with a lot of hopeful first-time home buyers and families looking to make a move. They are anxiously waiting for the right conditions for their home purchase loan.
Prequalified Cleveland Mortgage Rates
For some perspective, a $300,000 mortgage at a 4% mortgage rate is $1,432/month (without the taxes and insurance). That same mortgage with a 7% mortgage rate is $1996/month. These are both 30-year mortgage calculations. Most Cleveland suburbs will also have a property tax bill of at least $5,000/year for a $300,000 home, which adds a minimum of another $417/month. When Cleveland mortgage rates start fluctuating by up to 3 percentage points, from February 2022 (3.85% interest rates) to October 2022 (6.85% interest rates) that can make a difference in payment of over $550/month in this example.
Mortgage Rates May Push Buyers Towards a Risky Mortgage
We were disappointed to see a recent article in NBC News “Home Buyers Turn to Riskier Loans as Interest Rates Soar.” As mortgage brokers that have been through the 2008 financial crisis we have seen the damage that risky mortgage loans can cause. It’s important to talk to a trusted financial advisor, parent, mentor, or our loan officers about the potential consequence these loans could cause. Some loans to get more information about:
- Adjustable Rate Mortgages (ARM)
- Interest Only Mortgage
- 2-1 Buydown Mortgage
In all of these cases, the mortgage payment is artificially lowered at the beginning. Unfortunately, when the payment increases, the borrower may not find their mortgage payment fits their budget. Remember, property taxes and insurance are likely to go up over time. Other expenses of owning a home can also come as a surprise. Replacing or repairing appliances, a furnace, a hot water heater, roof, etc… The expense of maintaining a home also increases. A mortgage payment goes up. Property taxes go up. And at the same time home expenses could also increase. This can make a home owner feel overwhelmed and over budget.
Need a pre-qualification to find out how much home you can afford in Cleveland? Need a pre-approval to feel confident putting in an offer? Call Cleveland Mortgage Corporation for the lowest rates with the mortgage program that’s appropriate for your situation. Or fill out our contact us form and a Cleveland Mortgage loan officer will be in touch.