In today’s real estate market, mortgage interest rates are near record lows. If you’ve been in your current home for several years and haven’t refinanced lately,there’s a good chance you have a mortgage with an interest rate higher than today’s average.Here are some options you should consider if you want to take advantage of today’s current low rates before they rise.
Sell and Move Up (or Downsize)
Many of today’s homeowners are rethinking what they need in a home and redefining what theirdream homemeans. For some, continued remote work is bringing about the need for additional space. For others, moving to a lower cost-of-living area or downsizing may be great options. If you’re considering either of these, there may not be a better time to move. Here’s why.
The chart below shows averagemortgage ratesby decade compared to where they are today:Today’s rates are below 3%,butexperts forecastrates to rise over the next few years.
If the interest rate on your current mortgage is higher than today’s average, take advantage of this opportunity by making a move and securing a lower rate.Lower ratesmean you may be able to get more house for your money and still have a lower monthly mortgage payment than you might expect.
Waiting, however, might mean you miss out on this historic opportunity. Below is a chart showing how your monthly payment will change if you buy a home as mortgage rates increase:
Breaking It All Down:
Using the chart above, let’s look at the breakdown of a $300,000 mortgage:
When mortgage rates rise,so does the monthly paymentyou can secure.
Eventhe smallest increase in rates can make a differencein your monthly mortgage payment.
As interest rates rise, you’ll need to look ata lower-priced hometo try and keep the same target monthly payment,meaning you may end up with less home for your money.
No matter what, whether you’re looking to make amove upordownsizeto a home that better suits your needs,now is the time. Even a small change in interest rates can have a big impact on your purchasing power.
If making a move right now still doesn’t feel right for you, consider refinancing. With the current low mortgage rates, refinancing is a great option if you’re looking tolower your monthly payments and stay in your current home.
Take advantage of today’s low rates before they begin to rise. Whether you’re thinking about moving up, downsizing, or refinancing, let’s connect today to discuss which option is best for you.
Author:Brian Woodhead -Skyline Team Leader Phone: 602-369-0671 Dated: July 19th 2021 Views: 15 About Brian Woodhead: Realtor Designation
You deserve a Realtor with the Knowledge from these designations. Realtor’s...
View our latest blog posts in your RSS reader. Click here to access.
When it comes to the latest news in real estate, there are a lot
"In all our dealings with Realtors over the past ten years, we have never met anyone as helpful and energetic as you have been. Without hesitation, we would highly recommend your service to anyone who is looking for an experienced Realtor who cares about getting things done and doing them right! Thanks for taking such good care of us, we couldn't have done it without you!