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Sumter, Fla., is the best place in the country for a borrower to get a mortgage, according to a new study by SmartAsset.
Read more: Buyers Stuck on Down Payment Confusion
SmartAsset’s study considered four factors to pinpoint the best places in the country to get a mortgage: overall borrowing costs, ease of securing a mortgage, affordable property taxes, and affordable annual mortgage payments.
Borrowing costs were analyzed by factoring in expected costs over the first five years of a $200,000 mortgage with a 20 percent down payment, which included closing costs. Annual mortgage payments reflect the annual principal and interest payments for a $200,000 loan in that location.
The following 10 cities ranked highest in SmartAsset’s study (listed below with only the loan funding rate and annual mortgage payment):
- Sumter, Fla.: 71.58% (loan funding rate); $14,639 (annual mortgage payment)
- Walton, Fla.: 60.97%; $14,639
- Jackson, Mo.: 65.05%; $14,857
- Okaloosa, Fla.: 61.75%; $14,637
- San Mateo, Calif.: 67.92%; $14,688
- Collier, Fla.: 61.31%; $14,639
- San Francisco, Calif.: 66.61%; $14,688
- Santa Rosa, Fla.: 60.67%; $14,639
- Washington, Ore.: 67.35%; $14,830
- Indian River, Fla.: 62.36%; $14,639
How can your buyers score a better mortgage rate? SmartAsset researchers say the key is to shop around and compare mortgage rates carefully. Don’t let your buyers just fall for a bank’s advertisement, which often touts the lowest possible available loan rate – a rate many borrowers don’t qualify for. Lenders charge borrowers different rates based on the borrower’s credit so it’s important to shop around and compare.
Also make sure to let buyers know that although a 20% down payment loan was used in this particular study, there are many banks who offer low down payment options for home shoppers.
Visit SmartAsset to view an interactive mortgage map, in which you can scroll over your county to find how easy it is for securing a mortgage.
Source: “The Best Places to Get a Mortgage,” SmartAsset (2017)
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