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Interest rates have been sitting at historic lows for some time now. They're so low that they really can't drop any further, and that has people worried that they will be rising soon.
Your interest rate has a direct correlation with your monthly mortgage, and just a slight increase could cost you thousands of extra dollars over the life of a loan. On a $300,000 home loan, an increase from 4% to 5% will cost you an extra $263.57 per month!
Rates are currently sitting at about 3.75%, but they could shoot up to 4.6% by the end of 2016. This is according to a prediction made by Freddie Mac. Core Logic's latest home price index shows that homes have appreciated by 6.4% on average from this time last year. Homes are expected to appreciate by 4.7% in 2016.
The bottom line is that even a minuscule increase in rates will damage your purchasing power and limit your home buying options. To plan for this market shift you should set up a consultation with me so that we can find you the best home for the best price.
I look forward to hearing from you!
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