Low Mortgage Rates Can Make Your Dream More Affordable
10 min read
It’s totally normal to be indecisive about buying a house. This isn’t a pair of shoes or a splurge— and it’s definitely not something you can return in 30 days. In most cases, a house is a 30 year commitment. So it’s okay to take your time.
While you’re thinking about the decision, you might ask yourself: Will it be too expensive? Am I ready to settle down in one place? Is it really the right time?
But even if you’re mentally and financially ready, you might fear making the biggest purchase of your life!
We understand how you feel, but don’t let fear paralyze you. Here’s why now might be as good a time as ever to buy a home.
Mortgage Interest Rates are Low
The only thing predictable about mortgage rates is how unpredictable they can be.
From year-to-year and month-to-month, heck even day-to-day, mortgage rates can swing up or down. And while these changes might mean nothing to the average person, it can be the difference of tens of thousands of dollars for homebuyers.
Homes become more affordable when mortgage rates drop. And as a first-time homebuyer, affordability is your best friend.
So rather than let fear keep you on the sideline, get in the game and take advantage of low rates while you still can. Plus, a low rate helps keep your payment as low as possible, thus curbing some of your anxiety.
But this isn’t the only reason to take the plunge. Low mortgage rates can increase purchasing power, too. So in other words, you’re able to get more house for your money. And if you’re not interested in more square footage per se, a low rate can mean snagging a house with a few bonus features (you know, like a swimming pool).
If you can’t fully picture the savings, let’s say you purchase a $200,000 home with a rate of 3.2%. You’re looking at a monthly payment of $865 excluding taxes, insurance, and PMI. Not too shabby.
But if you wait until rates increase to 3.8%, your monthly payment jumps to $909 a month.
Still not a bad payment…but why spend more if you don’t have to.
Act Now Before It’s Too Late
Unfortunately, there’s no way to predict the movement of mortgage rates. They might stay roughly the same for years, or spike to new highs with little warning.
And when rates jump, there’s no way to know when they’ll fall again. What we do know is that homes become more expensive when mortgage rates increase. So if you’re in a position to buy, and you want the most bang for your buck, now’s the time to act.
Still nervous? No worries! Our loan experts at Real Genius are available to answer your questions and walk you through the process. Let us help you find the right mortgage to make your dream more affordable.