There’s no better time than today to invest in your family’s future and settle down in a new home. With rising interest rates, the cost of your dream home that’s affordable now may quickly become a missed opportunity later. Make the most of your buying power by choosing your new home today with the interest rate you want!

Here at Sunrise Homes, we want to help you receive the very best value for every dollar you spend on your brand-new home. If you purchase a new home today, you hold more buying power to get more home for your money. However, that could quickly change as interest rates are expected to climb in 2022. If you’re wondering how this change can affect your new home search, we’ll help paint the picture.

Let’s say you’ve discovered the perfect new home for your family, and everything is in order. You’ve saved up the funds for a down payment, chosen a lender, become pre-qualified and now you’re ready to purchase this home. The total cost of the home is $300,000 with a fixed interest rate of 3.5% on a 30-year term. The monthly payment for this home is $1,347, and you know you have enough saved to afford this. Instead of seizing this opportunity, you decide to wait and see if the price may drop. 

Unfortunately, the price doesn’t change but the interest rate does by a 1% increase, resulting in an altered interest rate of 4.5%. Although that rate increase may seem small, it can quickly change all of your plans. Now, the monthly payment for the home has gone up to $1,520, an increase of $173 in total. Again, that may not seem like a substantial shift, but throughout a full year of paying for your home, that translates to $2,076 more coming out of your pocket. 

This also significantly adds to your overall cost of homeownership with a total of $62,280 over the 30-year term. Rather than being able to put all of your hard-earned funds toward your house, more will be going to your interest rate instead. Rising interest rates mean the difference of a few hundred dollars each month, a few thousand dollars each year, and many thousands of dollars over the lifetime of your new home loan.

For over 60 years, Sunrise Homes has striven to always provide the best possible housing value. Reach out to one of our Preferred Lenders today. Don’t miss the chance to own your dream home, start moving before the interest rates beat you to it! 

Interested in finding or building your new home with Sunrise Homes? Reach out to us today at 985-778-7636.