All good things come to an end even low mortgage interest rates. They have been steadily rising and are poised to rise three more times in 2018. As mortgage interest rates rise so will the mortgage payment. A home priced at $250,000 with 10% ($25,000) down at today’s rate of 4.50% your payment would be $1,506. per month. With a rate hike to 5.5%, your monthly payment will increase to $1,644 on a 30 year fixed mortgage. This could make the challenges of today’s buyer’s market even worse for some prospective purchasers. The rate hike will not stop most buyers’ decision to purchase a home. Instead, it will create a sense of urgency. They’re starting to realize if they’re going to buy they should probably buy now. Overall, about 44% of prospective homebuyers say they will have to settle for a cheaper home. In addition, despite the increases, the housing shortage and soaring home prices are only likely to get worse. That is because of the abundance of buyers and lack of homes on the market. With the potential for higher interest rates, more sellers are seeing multiple bids on their homes at over the listing price.
Start now by checking your credit rating. If it is below 7%, start paying off bills fast. DO NOT purchase ANYTHING, especially large ticket items. Interview lenders to see what size down payment you need and get a pre-approval for a mortgage loan. You will need this when making an offer on a home especially if there are multiple offers. Sellers want to see if you are approved for a loan amount the size of your offer. When you receive the answers to these items, interview Realtors to find the one who will consult with you and help you find the home you desire.
When buying or selling a home in today’s market, you need a market-savvy Realtor who has experience not only in today’s market but who also has a team of professional Real Estate Consultants to guide you through the process of everything that is needed to be done. By hiring Susan Compagner and her team of Professional Real Estate Consultants to help you, you will receive expert advice from people who are knowledgeable, experienced, and who will truly listen to your Real Estate needs. Susan’s clients say, “Susan and her team are compassionate and caring about what they do. They have helped us when no one else could.” As your trusted Real Estate Consultants, my team and I meet with you and offer you the guidance and the information you need to make every facet of your transition as smooth and comfortable as humanly possible. As full-time Consultants, we are able to ‘work the market’ for you, keeping you up-to-date with conditions as they impact the market. Let us help you “Make A House Your Home.” Call/text Susan Compagner at 616.836.2603. [email protected] www.SusanCompagner.com