Mortgage Interest Rates: Can You Afford A New Home?

Mortgage interest rates are on the rise!

The real estate market is on an upswing. Increased property values are great for homeowners! But if you’re looking to buy a home within the next couple of years, higher listing prices and interest rates aren’t ideal. With increased property values, come increased mortgage rates. If you’re looking to buy a home, now is the time to act! Here’s your update on projected rate increases and how they’ll affect you!

The projection.

Most major real estate finance institutions predict an increase in mortgage rates. Based on reports from Freddie Mac, interest rates on your mortgage are predicted to increase by as much as 4.6% by the fourth quarter in 2016!

What an increase means for you.

As interest rates increase, so will your monthly mortgage payments. Essentially, you’ll be paying more money in the long run. Even a small increase of 0.5% can cost you thousands of dollars.

How to proceed.

If you’re ready to buy a home and you’re concerned about increasing mortgage rates, the best thing to do is consult with a professional. A real estate finance professional will be able to assist you in planning out your financial future and will help you determine whether or not purchasing a new home is something you can afford. Be aware that in order to afford a home you may have to adjust your daily lifestyle.

Comments are closed.