These last several months the talk has been about the impact of rising mortgage rates. This can severely affect your monthly payment. As these interest rates rise this will impact purchasing power by raising the cost of buying a home and limiting how much of a home you can comfortably afford. As you can see in the chart as the rate goes up the amount to borrow decreases and that may mean you have to look at homes for sale in a different price point. The interest rates are only going to get higher. The Fed's plan to raise the interest rates in November and December. Also depending on how that goes, they are even looking at next year to continue. My terminology is marry the home and date the rate.
What I mean is lock in home, interest rate and close the deal. Once the rates dip, refinance your loan to a lower rate. Remember it is going to get even more expensive with time. If you are renting, wait it out. Homeowner's that has equity can use net earnings as a cushion to absorb the price of new home to bring comfortable monthly payments.
Everywhere you turn around there is inflation in all areas that I don't even have to mention. This is an era we live in that one must be wise and careful in large purchases. Basically, it's true that it cost more to buy a home today than last year, however the same goes to renting as well. Renting is just as high as a mortgage payment. This is why many renters are cleaning up credit and turning to buying a home. The difference is that in home ownership your chances are more than likely is you are going to gain equity over time which will help your net worth. This is not going away anytime soon. It easily took two years to get into this atrocity and will take at least three to six years hopefully to get back to pre-pandemic home prices and interest rates. So it makes sense to buy a home today
Either way you are going to pay more, so why not fire your landlord and use a trusted advisor and professional realtor stay connected to Kevin Strawter. Click here for my free e-book https://kevinstrawter.book.live/buyer-book
Serving Dr Phillips and all Central Florida. Call 850 496-6412 for appointment today. Make sense?