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. These are the things to do before mortgage rates rise!
Sell and Move Up (or Downsize)
Many of today’s homeowners are rethinking what they need in a home and redefining what their dream home means. 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.
Right now rates are below 3%, but experts forecast rates to rise over the next few years.
Waiting, however, might mean you miss out on this historic opportunity!
The chart below shows average mortgage rates by decade compared to where they are today:
Possibly Lowering Monthly Payments:
Using the chart below, let’s look at the breakdown of a $300,000 mortgage:
- When mortgage rates rise, so does the monthly payment you can secure.
- Even the smallest increase in rates can make a difference in your monthly mortgage payment.
- As interest rates rise, you’ll need to look at a lower-priced home to 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 a move up or downsize to 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 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 rates mean you may be able to get more house for your money and still have a lower monthly mortgage payment than you might expect.
If you wait, however, it might mean missing out on this historic opportunity.
See the chart below showing how your monthly payment will change if you buy a home as mortgage rates increase:
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 to lower your monthly payments and stay in your current home.
The Bottom Line
Take advantage of today’s low rates before they begin to rise. Whether you’re thinking about moving up, downsizing, or refinancing, talk to our trusted lender, Tom at Fairway Mortgage www.applywithteamtevis.com and 972-754-4677. These are the things to do before mortgage rates rise!
Please feel free to call us if you are feeling the need to make a move, we can answer your questions regarding selling your house, buying and investing!
Beth Brake and Mindy Short
Positively impacting your life as you move toward your dreams.