Interest Rates Are Predicted To Rise, Make Sure To Buy Before It’s Too Late

How Interest Rate Increases Affect Home Buying

With rising interest rates, now is the time to buy!

When buying a home, it’s important to look at the financial aspects. Unless you have hundreds of thousands of dollars in cash, you’re going to need a home mortgage loan. You qualify for a loan and you’re ready to buy a home, but keep in mind that your mortgage loan comes with interest rates that you need to pay back. These rates impact your monthly payment and the total that you pay for your home over time. Lower interest rates mean that you ultimately pay less in the long run.

Interest rates are currently set at a reasonable rate around three percent. However, it’s not expected to stay that way. Interest rates are expected to rise over the course of the next year. According to a report from Freddie Mac, they predict that mortgage rates will increase to 4.6 percent by the fourth quarter. This rise in interest rates isn’t great news for potential home buyers.

What do rising interest rates mean to you? Now is the time to buy while interest rates are still low. As interest rates increase, so do your monthly payments.  As little as a .5 percent increase can raise your monthly payment significantly costing you thousands of dollars in the long term. Additionally, home values are predicted to increase. It’s the perfect time to buy as you get lower interest rates and a nice return on the value of your new home.

Make sure that you’re taken care of with the right realtor when looking for a new home. Whether you’re buying or selling, be sure to contact professional Realtor Cary Amo in Lafayette, California for all your real estate needs.

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