How Does A Mortgage Rate Increase Effect Your Buying Power?

With the booming economy and rising consumer confidence in the United States, it is almost assured the we will see an increase in Mortgage Interest Rates in the coming year. Many experts expect an increase of 0.5% by mid year, and up to as much as 1% by December.

That doesn’t seem like a big deal. After all, generations before ours had rates of 15, even 18% for mortgages. We are no where near those rates of the past…right?

Think of it in terms of your personal “Buying Power”.  How much home do you need? How much home do you want?

An interest rate increase of as little as 0.5% can drastically change how much home you can afford. As a result, you might not end up with the perfect home for your family.  That is without paying thousands of dollars more either out-of-pocket as a down payment, or over the life of your loan.

In 2018, the best time to buy your new home is right now.  Let’s get started, save you thousands of dollars, and get you your perfect home!

Click on this link (Mortgage rate increase effects) for an example I drafted to show how your home buying power will change when those rate are raised. Feel free to email or call me with any questions.

 

 

 

Posted on January 23, 2018 at 2:00 am
Kevin Jacobs | Category: Mortgage Rates, Uncategorized

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