WAITING TO BUY MAY COST YOU MORE...

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This morning I received an email from a lender about rising interest rates and predictions for the end of year rates exceeding 5%. Of course, we can never predict the future but all signs seem to indicate that rates will keep going up this year. So if you have plans to purchase a house this year then the sooner the better. Check out this blog from our lender and see how rates relate to monthly payments. 

If you have any questions feel free to Email: brad@bradjonesrealestate.com or Call/Text 910-262-2684

 

"With the first quarter of 2018 in the books, the 30-year fixed rate mortgage is nearing what Freddie Mac predicted it would be in the second quarter. If this pace continues, rates will exceed the five percent mark expected by the end of the year.
The Fed has had its first of an expected three raises for this year and two more are expected in 2019. While these rates are not directly related to mortgages, they certainly have an effect.
Delaying the decision to purchase or refinance could be an expensive missed opportunity. A $270,000 mortgage at 4.44% has a principal and interest payment of $1,358.44 per month. If the rate were to rise one-percent in the next twelve months, the payment would be $1,522.88.
The $164.44 increase would cost a homeowner an additional $13,812.97 in seven years and close to $60,000 over the full term of the loan.
The question facing people is "what would you spend $164.44 each month if you had acted sooner to get the lower rate?" "
Brad Jones