Concerned About Rising Interest Rates?

ethangregory Real Estate Leave a Comment

There is rising chance that there will be mortgage interest rate increases in 2018.

With the economy and employment doing so well it appears the Fed will raise interest rates that will trigger a delayed rise in mortgage rates. To avoid paying higher borrowing costs it makes sense to buy a home now and save in the long run.

Even small increases in the mortgage rate can affect how much you can borrow from the bank. Lets say you are pre-approved for a $200,000 loan right now. If rates rise a quarter point you may only be able afford a loan of $175,000. This can greatly hurt your buying power and change what homes you look at. Buying your dream home now can mean the difference in a few hundred dollars a year in interest payments  on the loan.

Consider purchasing a home soon before later in the year and interest rates rise.

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ethangregory