Don’t Wait for a Lower Mortgage Rate – It Could Cost You

Today’s housing market is truly one for the record books. Over the past year, we’ve seen the lowest mortgage rates in history. And while those rates seemed to bottom out in January of this year, the golden window of opportunity for buyers isn’t over. If you’re one of the buyers who worry they’ve missed out, rest assured today’s mortgage rates are still worth taking advantage of.

Our mortgage rates are below what they’ve been in decades. So, while you may not be able to lock in the rate your friend got recently, you’re still in a great position to secure a rate near record lows. The key will be acting sooner rather than later.

In late September, mortgage rates ticked above 3% for the first time in months. And according to experts throughout the industry, mortgage rates are projected to continue rising in the months ahead. Here’s where experts predict rates are headed:

A projected half percentage increase may not seem substantial, but it has an impact when you’re buying a home. When rates rise even slightly, it affects how much you’ll pay month-to-month on your home loan. The chart below shows how it works:

In this example, if rates rise to 3.55%, you’ll pay an extra $100 each month on your monthly mortgage payment if you purchase a home around this time next year. That extra money can really add up over the life of a 15 or 30-year loan.

The rates we’re seeing right now give you a unique opportunity to afford more home for your money while keeping your monthly payment down. You'll also have the benefit from the forced savings that amortization creates with every mortgage payment, as wells as growing equity from appreciation.

Bottom Line

Waiting for a lower mortgage rate could cost you. Let's connect today and start you on the path to homeownership