Waiting On Lower Mortgage Rates? It Could Cost You
Anyone who pays attention to the real estate market will know that interest rates have been their absolute lowest over the past year or so. It's truly been a historic occurrence. Though these low rates saw the lowest point in January, that doesn't mean new home buyers are out of luck. Today's rates are still extremely low. So if you've been thinking the optimal time to get in on these great deals has passed, you may just want to reconsider.
Though rates are slowly on the upswing once again, they're still significantly lower than the market has experienced in decades. Maybe you won't be able to obtain the same great rate your friend or neighbor achieved last year, but you're likely to find the mortgage rate you qualify for will be lower than even those of generations past. However, you'll want to move on these historically low rates now, as they are creeping up once again.
In fact, it was just late September that rates went above 3% for the first time since they started their initial decline. Industry experts believe that this trend will continue everywhere as the months progress. Now may truly be the best time to take your search for homes for sale in Kansas City seriously.
Expert projections are forecasting at least a half percentage point on average increase by this time next year. That doesn't seem like a lot, right? Wrong. In actuality, even that slight rise in interest will cause your monthly mortgage payment to be significantly higher.
Let's break down the numbers to see just how much extra you could expect to pay. Today's average mortgage rate stands at about 2.99%. If you qualify for a $350,000 loan, you'll be looking at monthly payments of approximately $1475. Next year, with a projected interest rate of 3.55%, that same loan amount will cost you right around $1580. That's quite a difference.
More than a hundred dollars more per month adds up quickly. Take into consideration that much compounded each month over the course of a 15 or 30-year loan, and you're looking at thousands of dollars spent. Just think about what you could do with that kind of money.
You now have a clear illustration of why you might not want to wait on lower mortgage rates. Instead, jumping on today's currently low mortgages could be your best bet, allowing you to buy more home for your money at the most affordable payments.
Experts are in agreement that rates will rise. Now may be the time to connect with a real estate professional and meet with your lending institution to begin preparing to lock in the best rates possible before they begin to hike up any further. Waiting could cost you.
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