While buyers are still getting no relief on home prices, conditions are improving. More homes are for sale, and mortgage rates have fallen in recent months. To make homebuying more affordable, Tropical Financial Credit Union is offering a $500 credit toward closing costs to borrowers.
New listings in Miami rose 24% in February from levels the year before, according to Redfin, a national real estate brokerage. They jumped 25% in Fort Lauderdale over the same time period.
The average rate on a 30-year fixed-rate mortgage was 6.79% at the end of March, according to Freddie Mac. That’s down from the peak of 7.79% just five months earlier. The drop is saving buyers $3,564 a year on a $545,000 home purchase in Miami with a 20% downpayment. That’s a little more than one monthly mortgage payment.
Along with a downpayment, borrowers encounter other upfront charges such as a title search, title insurance, and closing fees. Lenders have their fees as well: origination, appraisal, and credit report. Add to that the point or points associated with the mortgage rate that tacks on 1% of the amount borrowed for each point.
It pays to shop around for the best deal. Tropical Financial’s $500 credit toward closing costs is one way to save. The offer is good through May 31, 2024, and only applies to first mortgages.
With more homes on the market, sellers may be more willing to split upfront expenses. They could pay one or more points on the mortgage rate. Better, they can contribute a set dollar amount known as a “flat credit” toward closing costs. The buyer applies the funds as they see fit toward the financing and closing costs.
How else can buyers save? Tropical Financial offers a HomeAdvantage program that allows members to tap into the expertise of local real estate agents who will guide them through the buying or selling process. And members will also enjoy financial incentives like cash back and discounts on closing costs.
Visit the credit union’s website for the latest rates on conforming and jumbo mortgages. For a full list of disclosures on the $500 credit at closing, please visit our informational web page.
