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Many Buyers of San Diego Condos Do not Understand Mortgage Information

As the market for San
Diego condos
and homes continues to struggle, it is obvious that
condominium buyers are not prepared to take out any mortgage. It is found out
that they know little information about loans. Almost half of prospective
buyers of downtown San Diego condos
have actually admitted that they have little confidence when it comes to
mortgages and how they work. A recent survey on prospective condo buyers was
done to determine their knowledge of loans and mortgages, and the results have
been at least surprising.

More than half of potential buyers of San Diego condos who participated in the
survey have no clear understanding of how adjustable mortgages work. When they
were asked in the survey if rates on ARMs reset higher after 5 years, majority
of these buyers answered to the affirmative. The fact is that ARMs interest
rates will simply make necessary adjustments to the prevailing rates within
five years, even when such rates have gone down. Currently, many mortgage
borrowers with recently-reset ARMs possess interest rates that are lower than
the rates at the time that they got the loan.

In addition to this, one-third of all respondents
who are considered to be prospective buyers of downtown San Diego condos have no clear understanding about lender
fees. They are not aware that such fees can be negotiable upon; and that they
vary from one lender to another. They have similar beliefs that lending
companies are mandated by law to get the same amount of fees for appraisals and
credit reports. In fact, fees involved in mortgages and loans vary widely. This
is the reason why many buyers of San
Diego condos
can save substantial amount of money by searching for the
lowest possible fees.

Consumers normally will not dare to make a move if
they are not fully aware of the possible consequences. However, in the case of
buying San Diego condos,
a lot of buyers commit themselves to the biggest condo loans that they can have
in their lifetime even without ample information about mortgage loan products.
This should never be the case, since it is detrimental financially to any buyer
in the long run. What prospective borrowers must do is to first spend time
making research on how mortgages work. Once he is armed with information, this
will help him in shopping for the most competitive fees and interest rates.
This way, buyers will be able to save significant amount of money.

 

 

For more information about Downtown San Diego Condos contact:

Gregg Neuman

1-800-221-2210

Contact the Neuman and Neuman Team

www.SellSanDiego.com

Find
More San Diego Real Estate Here!



This post first appeared on Neuman & Neuman Prudential California Realty, please read the originial post: here

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Many Buyers of San Diego Condos Do not Understand Mortgage Information

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