You’re getting ready to buy a new home or condominium! How exciting! We have been working together for the past few weeks to find you the right home. And part of that process is having our Team help y0u get your mortgage. So, I’m often asked by Buyers, Does My Interest Rate Really Matter?
Well it sure does! Currently, interest rates are at an all time low…Like BELOW 3 percent! But what happens when the rates start to go up, and as they say, what goes down, must come back up! Wait, maybe that was the other way around? Anyways…
Take a look at this chart and see the difference in buying power between 3.5% and 5.5% —
$237 per month could certainly make difference in the type of home you buy. In fact, if $898 per month (not including the taxes and insurance) you would have to look at a home that is $50,000 less in price to still be in your budget. $50,000 in a house or condo price can be a world of difference as to what you buy.
If you have been “sitting on the fence” thinking about whether to buy or not, just keep in mind that if, and when, interest rates go up, your buying power and the size of your home, might go down.