Warren Buffett's Berkshire Hathaway warns U.S. on mortgage rates

Mortgage rates held steady Dec. 16, with the 30-year fixed rate (FRM) at 6.27%, according to Mortgage News Daily. The 15-year fixed mortgage rate is 5.75%.The Federal Reserve Bank of St. Louis had reported a 30-year fixed mortgage rate of 6.22% on Dec. 11.These numbers signal a sign of stability in the low 6% range, which is a remarkable development — even though it's not in the realm homeowners and buyers would like to imagine — compared to previously more desirable rates.Related: Zillow predicts strong mortgage rate move soonWarren Buffett's Berkshire Hathaway HomeServices has a word of warning for homebuyers as we approach the new year."Your first mortgage payment is due on the first day of the month after you’ve owned the home for a full month," Berkshire Hathaway wrote. "So if you close on Jan. 18, your first payment would be due March 1."The company has a number of important considerations homebuyers would be wise to understand.Warren Buffet's Berkshire Hathaway has a warning for homebuyersSome basic components of a standard mortgage payment for homebuyers are key to a successful real estate purchase.The Consumer Financial Protection Bureau describes PITI (Principal, Interest, Taxes and Insurance) as the four basic elements of a monthly mortgage payment."Your payments of principal and interest go toward repaying the loan," CFPT wrote. "Amounts that cover property taxes and homeowner’s insurance may go into an escrow account, if you are required or choose to have one, to cover your property tax and homeowner’s insurance payments as they come due."More on mortgages, housing market:Zillow sounds alarm mortgage rates, housing marketBerkshire Hathaway HomeServices predicts housing market pivotRedfin sends strong message on mortgage ratesBerkshire Hathaway explains the profound difference for homebuyers between getting a fixed-rate mortgage and an adjustable rate."The payment typically consists of PITI — principle, interest, taxes, and insurance, as outlined on the closing disclosure document you received three days before closing," Berkshire Hathaway HomeServices wrote. "If you got a fixed-rate mortgage, the principal and interest (P&I) will be consistent, but if you got an adjustable rate, your P&I could change as often as six months to one year following a brief fixed-rate period of five months or so."Berkshire Hathaway notes MIP and PMIFor Federal Housing Administration (FHA) loans, if you make a 3.5% down payment, your monthly payment will include a mortgage insurance premium (MIP) for the entire loan term.If you put down at least 10% on an FHA loan, MIP is still required but can be canceled after 11 years.Conventional loans use private mortgage insurance (PMI), which is structured differently.PMI typically involves an upfront cost of about 1.75% of the loan amount, plus a monthly premium ranging from 0.15% to 0.75%.The exact PMI cost depends on factors such as loan size, loan term, and the loan-to-value ratio.If your down payment is less than 20%, PMI is mandatory, but it can be removed once you reach 22% equity.You may request PMI removal earlier, at 20% equity, achieved through regular payments, extra payments, or increases in your home’s value.Neither MIP nor PMI rise over the life of the loan.Late payments can delay PMI removal, add late fees, and negatively affect your credit score.Berkshire Hathaway describes homeownership hidden costsHomeownership comes with several hidden costs that often rise over time, beyond the basic mortgage payment, according to Berkshire Hathaway HomeServices.Property taxes are based on the value of your home and fluctuate with market conditions, according to the U.S. Office of Tax and Revenue. Rates differ by city, county, or state depending on the services provided. Some jurisdictions use assessment ratios or caps to limit increases, while reassessments every few years can reset values. A common surprise is that taxes are recalculated based on the purchase price, often higher than the seller’s prior assessment.Homeowners’ association (HOA) or condominium fees are collected regularly to maintain community standards and amenities, Berkshire Hathaway HomeServices explains. The more features a neighborhood offers — such as pools, trails, or clubhouses — the higher the fees. While these charges can sometimes be escrowed with your mortgage, special assessments may be imposed unexpectedly to cover repairs or upgrades.Homeowners insurance is usually required by lenders and included in monthly escrow payments. Premiums are influenced by factors such as location, property condition, credit history, deductible size, and coverage options. Rising costs are driven by severe weather, inflation, and construction expenses. Insurers may also adjust policies by removing certain protections, leaving homeowners with higher risks and costs.Utility bills for electricity, gas, and water have risen sharply due to climate volatility, supply chain issues, and increased energy demand. Outdated appliances and poor insulation can further inflate costs. Those moving from apartments may be surprised by the lack of bulk-rate discounts available to large complexes.Maintenance and repairs add another layer of expense. Routine services like lawn care or snow removal increase monthly outlays, while major replacements — such as roofs, HVAC systems, or appliances—can cost thousands. Inspections help anticipate these needs, but unexpected issues like mold or foundation damage can still arise.Related: Redfin forecasts major mortgage rate change