Categories: Purchasing a New Home, Sunrise Homes | Posted: June 5, 2017
You are ready. You have: saved for your down payment, chosen a lender, received your pre-qualification letter, and begun the great hunt for your dream home. After what seems like an endless home shopping journey, you’ve finally found the one! That brand NEW home in the most charming community, with the unbelievable school district is calling your name. You’ve even started dreaming of home decor & organizing your huge, new walk-in closet! You know you can afford the monthly payment, and you’re ready to put in an offer. Then you decide to wait….
You think to yourself, “Maybe I’ll hold out to see if the price drops $1000”.
Getting the very best value for every dollar should always be your goal, but there are factors other than the listing price to consider when deciding when to make an offer. While waiting for the price on your dream home to drop $1,000, you could experience an interest rate hike that could mean the difference between affording the home and missing your chance. Get moving…before the interest rates do.
You could spend that $1,000 “savings” on interest, during just your first year of homeownership in extra interest.
In 2016, mortgage rates reached a historic low. Since then, rates have been steadily climbing. Buyers who purchase in 2017 remain in a better position than buyers who purchased at any point between 2006-2016, but that could change, as interest rates are expected to climb throughout the year. According to mortgage forecasts found at themortgagereports.com, a rate hike is imminent, and will likely occur at the Federal Reserve meeting on June 14, 2017.
What does an interest rate really mean to buyers? It could mean the difference of a few hundred dollars each month, a few thousand dollars each year, and a great many thousands of dollars over the lifetime of your loan.
In the graphic above, a home priced at $295,000, when purchased with a 30 year mortgage loan, at a fixed interest rate of 3.6%, equates into a $1,341 monthly payment. If interest rates climb 1%, the monthly payment on the very same home rises to $1,512. That’s $171 more each month you’re spending for the same exact home! Over the course of a year, you’ll spend $2,052 more than you would have at the lower interest rate. Over the course of 30 years, you will have spent $61,560 more on your mortgage as a result of a 1% interest rate increase. Still think it’s worth the wait to see if the listing price drops?
At Sunrise Homes, we want to help you find the home of your dreams, within your budget. Our mission is to always provide the best possible housing value. We even offer closing cost incentives to our customers. Don’t let your dream home slip away because of an interest rate increase.
Let us help you get moving…before the interest rates do!
Call Jayne at (985) 639-1958 today, and experience the difference with Sunrise Homes.