The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.
Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next 12 months.
How Will This Impact Your Mortgage Payment?
Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.
According to CoreLogic’s latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year.
If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.
Even a small increase in interest rate can impact your family’s wealth. Let’s get together to evaluate your ability to purchase your dream home.
Thank you for visiting our website. The Guevara Team is known to work relentlessly on the client’s behalf to help them achieve their real estate goals. We service Los Angeles County, Orange County, Riverside County and San Bernardino County. Let The Guevara Team help you navigate the sale or purchase of a home in your local real estate market, email us at firstname.lastname@example.org or call/text us at (424) 286-0008. (Se Habla Español)
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Source: Simplifying The Market