How Do Interest Rates Affect Your Buying Power?
Interest rates are historically low right now, but they are starting to rise again. Currently, mortgage interest rates are 38% lower than they were just 10 years ago! With projected interest rates around 4.3% for 2017, it is an excellent time to make any sort of real estate transaction.
Just a year ago rates were around 3.5%. This February, they are hovering around 4.1%. In just a simple half percentage point, the monthly payment rises around $50. Without even counting the interest, that is a cost of $18k over the life of a 30 year fixed loan! If you are thinking of waiting it out to adjust your finances to buy a new home, contact us now to review your options.
We have many connections and can help figure out the best way to get you into a home. Don’t put off buying a home if you are planning to later in the year. There might be a way to get you into a new home now, which could save you thousands from the expected interest rise. It’s free to ask and see what is available to you, so why not test it out and see how much you could save!
A very common misconception among home buyers is that everyone must have 20% of the loan to use as a down payment. This is simply not true! There are numerous options, all the way down to even zero money down (not just the Veteran Affairs Loan).
If buying now and not risking that half percentage point rise could save you over $18k and there is an option to put less money down, why not take advantage of it?
Upgrading, downsizing, first-time buyer, relocating, investment home, investment property or vacation home, now is the time to act while the rates are at this historically low level.
Buying a home is still the American dream and a sound investment in your future. Inventory is low in Idaho Falls! Contact Us to help you find the perfect property to fit your needs.