Mortgage rates have hit a nearly three-month low, making it a good time for home buyers to consider purchasing. However, with cheaper home loans comes the risk of overlooking phantom costs that can increase the true cost of homeownership.
Phantom costs refer to expenses associated with buying and owning a home that are often overlooked by home buyers beyond their mortgage payment. These costs include property taxes, insurance premiums, maintenance fees, repairs, and utility bills. Elevated mortgage rates have made it more expensive for people to take on a mortgage, leading to a decrease in home-buying activity.
As home prices continue to rise, buyers must be aware of these hidden costs that can add up quickly. It is essential to factor them into your budget to avoid financial surprises down the line. By understanding phantom costs and planning ahead, you can make an informed decision when buying a house.
Source: https://www.marketwatch.com/story/home-buyers-are-getting-relief-from-lower-mortgage-rates-but-these-phantom-costs-could-sneak-up-on-them-d1a042c2