Interest rates–everyone wants the best they can get when purchasing a big-ticket item like a car or especially a house! The interest rate you qualify for depends on your particular situation, your credit rating, your debt-to-income ratio, and other factors. But does it really make that much difference?
In a word–YES! Your interest rate for a mortgage loan makes a difference in how much home you can buy for the money. Click on the link below and see an illustration of how much a $999 payment will buy at 3 different interest rates.
This can be great news if you’re looking to buy a home–it’s a good time to get off the fence and do it! No one knows where interest rates will be in 6 months or a year, but they won’t stay this low forever! Eventually they’ll head the other direction and when they do, the price of what you qualify for will change. Want the most bang for your buck? Think about buying now rather than later!
For Sellers, this is also good news as it means more buyers will qualify to purchase the house you’re selling, or thinking of selling. The other good news for sellers is that our listing inventory is still low. Demand is high, supply is low, so it’s a seller’s market! If you’ve been thinking about downsizing, upsizing, relocating, or just ready to make a change, this is a great time to do so! Demand for your home will be good, property values have risen so it’s likely your equity has as well, and when you’re ready to purchase something else, you can take advantage of these low interest rates.
Bottom line–whether you’re buying or selling, there’s no time like the present! As Nike says, just do it!