Interest rates are rising! Do your really think that 5% is high??!!
Jim Patton, shared a post some time ago that still can be used today. There are many useful ideas that can & should be used to further help guide your next real estate transaction. Use these suggestions as a starting point and customize further to your own specific situation. Thanks for sharing.
Interest rates are rising! Do your really think that 5% is high??!!
I'm sure by now you have heard that interest rates have risen a bit. Some people are a little bit
freaked out by that. Interest rates have been very low for a while now and they have crept up a bit over the last couple of weeks. Just a couple of weeks ago you could probably have gotten a mortgage with an interest rate under 3%. Now you might have to pay as much as almost 5% for your mortgage.
Some "experts" are saying this might cool off the very hot Stanislaus County real estate market. Some people are saying that this rise in interest rates might scare away some buyers. I think that if people stop and think about it that this will just be a minor blip in the market.
How about a little per
spective on interest rates from my point of view. Back in 1984 I bought my first home. ( I know I was very young then.) Interest rates were a lot different then. The house we decided to buy had a mortgage that we were able to assume. (Remember that?) The interest rate on that mortgage was around 12% and we were ecstatic that we could get that rate. Of course the existing loan wasn
't enough to cover the purchase price so we needed a second mortgage. That second mortgage was around 15%. (That 5% rate sounds pretty good now doesn't it?)
The house we bought was just over $60,000 (I don't remember the exact price) and our payment was around $1000 per month. Today if you bought a home and had a mortgage of $150,000 at 5% (with taxes and insurance) your payment would be just over $1000. So even though people are starting to get nervous about rising interest rates , if you look back at history you will see that today's rates are still very good! All you need is a little perspective.
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Jim Patton - Realtor, Short Sale Specialist, CDPE
Century 21 M&M and Associates
DRE# 01423125
Ph. 209-633-2839
The author of this blog, Jim Patton, is a full time Realtor with Century 21 M&M and Associates. Jim is a Central California Short Sale Specialist who lists and successfully sells short sales throughout Stanislaus, Merced and San Joaquin counties. Call Jim Patton at 209-633-2839.
The views expressed herein are Jim Patton's personal views and do not reflect the views of Century 21M&M and Associates
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