You may ask yourself this question before you start the buying process. But if you have been in the market of buying a home over the past six months, the answer to this may have changed depending on your preferred monthly payment and in some cases, your qualification all together.
Home mortgage interest rates have increased by approximately 1 percentage point over the past six months. This increase in rate could take a monthly mortgage payment up by more than $100 depending on the sales price. So if a potential home buyer were looking six months ago at a certain price point, they would have to decrease their projected sales price by approximately $25,000 in order to keep the same comfortable mortgage payment; or be prepared to pay the higher monthly payment. For some buyers, this would make a huge impact on the amount of home they would look to buy.
However, interest rates are still historically low and below 5%. So now is a great time to finance your first home or make that move up purchase that you have been thinking of. Let us know what we can do to assist you with your next home buying experience.