Interest rates and Home Buying

Kathy Leave a Comment

We keep hearing that rates are going to go up, and it’s usually done with a negative connotation, meant to motivate buyers to purchase now. For me, the problem with this thought process is the scare tactic. I bought my first home in 1985 and my interest rate was 14%! Now that’s high. So when I read that rates may go up as high as 4 1/2% or even 5%, I feel that’s still affordable and not scary at all. We have been fortunate that rates have remained so low for several years now but we knew it wasn’t going to last forever.

There are other factors to consider as well. FHA recently announced they are reducing the mortgage insurance rate by up to .25%. It’s important to understand that it’s more than just the interest rate that affects your payment amount. There are so many programs and loan types available, this is why you want a knowledgeable lender working for you. Ask me for a referral if you don’t already have a loan officer. It’s one of the many services I offer my clients.

The bottom line is, it’s still a great time to buy! I am excited for 2017 and being able to continue to make my clients home buying dreams come true. So who is ready, because I am here to help you! 

Read the Original Article Here: Is This the Year to Move Up to Your Dream Home? If So, Do it Early

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Kathy

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