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A Few Points About Interest Rates
Less is more
If you're new to investing or real estate and don't know the first thing about
interest rates, here's a good tip: the higher the interest rate, the more
expensive it's going to be. High interest rates mean you will have to pay back
more on the money you borrow. Another good rule of thumb is that
affordability increases if you use an adjustable rate mortgage (it's easier to
qualify this way). Of course, there will be a wide range of prices that you can
choose from, depending on what kind of financing you choose..
Not even the Fed knows for sure
The Fed holds a considerable amount of power, but they can't control
everything. Mortgage interest rates are affected by many unpredictable
political, economic and social events. So there is no guarantee what direction
interest rates will go, despite the forecasts of the experts. Therefore, make
your financial decision based on where things are today including your
budget, your needs and your future plans
Locking in rates assures your lowest interest
If you do decide you want to lock in at a certain interest rate, you will need to
complete a loan application and send it to your lender as soon as possible.
This must be done so that your commitment doesn't run out before your loan
is approved. Follow up and be se sure that the lender is receiving all of the
necessary documentation. Get a property appraisal, which usually costs
about $300, through your loan agent as soon as possible.
Don't obsess and miss a good real estate deal
Although rising interest rates can create more problems for home buyers,
waiting and hoping for low rates is not necessarily a smart move. You may
end up paying a higher price. Also, refinancing is always an option in the
event that interest rates come down.
Less is more
If you're new to investing or real estate and don't know the first thing about
interest rates, here's a good tip: the higher the interest rate, the more
expensive it's going to be. High interest rates mean you will have to pay back
more on the money you borrow. Another good rule of thumb is that
affordability increases if you use an adjustable rate mortgage (it's easier to
qualify this way). Of course, there will be a wide range of prices that you can
choose from, depending on what kind of financing you choose..
Not even the Fed knows for sure
The Fed holds a considerable amount of power, but they can't control
everything. Mortgage interest rates are affected by many unpredictable
political, economic and social events. So there is no guarantee what direction
interest rates will go, despite the forecasts of the experts. Therefore, make
your financial decision based on where things are today including your
budget, your needs and your future plans
Locking in rates assures your lowest interest
If you do decide you want to lock in at a certain interest rate, you will need to
complete a loan application and send it to your lender as soon as possible.
This must be done so that your commitment doesn't run out before your loan
is approved. Follow up and be se sure that the lender is receiving all of the
necessary documentation. Get a property appraisal, which usually costs
about $300, through your loan agent as soon as possible.
Don't obsess and miss a good real estate deal
Although rising interest rates can create more problems for home buyers,
waiting and hoping for low rates is not necessarily a smart move. You may
end up paying a higher price. Also, refinancing is always an option in the
event that interest rates come down.