Interest Rates ARE Rising!

Interest Rates ARE Rising!

  Super Low Rates May be Gone For Good

 Have you been on the fence about buying a home in recent years just waiting for that perfect time? If the rise in home prices in the last 15-16 months hasn't been enough to move you maybe the fact that interest rates have risen almost 10 percentage points in just over a year will give you some food for thought. To further solidify the change in interest rates the Feds plan to stop purchasing Treasury bills and mortgage backed securities as soon as September of this year which is what has been keeping rates down for so long. Investors would have to step in to make those purchases and interest rates would have to be much higher to attract those investors to start buying! So what does a 10 percentage points look like when you're buying a home? Well for example if you're getting a 30 yr loan for $250k at 3% interest the principal, interest, tax, and private mortgage insurance would break out to about $1,366 a month. If the rate is bumped to 4% on that same loan amount the payment is $1,506 a month. That's a difference of $140 a month or almost $50,000 more money over the life of the loan! Interest rates are rising so if you haven't started seriously looking for a home the sooner the better! Check housing inventory in your area now

  So how do you get the best possible rate? There's a few possible rate buckets that are available to home buyers. If you're a year round owner occupant who's putting at least 20% down on a home and have a 720 plus credit score then you'll most likely get the best rate available in today's market. For other buyers i.e. the investor, the vacation home buyer, lower credit scores, smaller down payment etc. there's still great options but you won't receive the lowest interest rates out there. Interest rates are rising so the longer you wait to lock in your rate the more you'll pay for the same house just six months or less down the line. The first step you'll want to take to get prepared is to get prequalified. This sounds difficult but it actually very simple and take just 5 or 10 min. over the phone. Nowadays you can 't even make an offer on a home with having been prequalified. Sellers an their agents need to know that you're a serious and viable buyer in this tight market. You can easily take this first step by CLICKING HERE

   If you take into account that fact that interest rates are rising by the month, home prices are rising by the month, and unemployment has been steadily dropping for over two years you have a great case for now being the time to buy your next home before you get priced out of market. Not sure where to start? As mentioned above get pre-qualified, then make a list of the items that are important to you in a home, the location, the price, the neighborhood amenities, number of bedrooms, baths, etc. and you'll be well on your way to landing your next dream home! You can also try this link to research any neighborhood you like for information on crime rates, school ratings, median home values and much more. The best thing you can do for you TODAY is just get off the fence! 

  Interest Rates ARE Rising!