Have you been thinking about buying a new home? If so, you’re probably aware that mortgage rates have been at an all-time historic low over the past year or so. It’s likely you’ve also seen them begin to slide back up again, and you may think you’ve lost your window of opportunity to get in on the record lows. Maybe you’re thinking you’ll wait a while to see if rates begin to fall again. In actuality, waiting could cost you. The rates you’ll find today could still save you plenty of cash.
Though things have begun to slowly climb again, current rates continue to fall well below anything we’ve seen in years. The rate you score today will be much lower than it has been for generations past, but you will need to act quickly to take advantage.
Not long ago, in September, mortgage rates crept above the 3% mark for the first time since they had bottomed out. Industry experts don’t see them falling again any time soon. Projections show interest rates continue to rise over the next several months. In fact, by the third quarter of 2022, the average is projected to be around 3.55%.
You might not think that seems like a very big deal. After all, it’s only half a percentage point. When it comes to buying a home, even small increases can be quite substantial when you take a look at the big picture. Your monthly mortgage rate could be greatly affected due to this seemingly tiny jump.
Let’s break the numbers down. At today’s average rate of 2.99%, a $350,000 mortgage would work out to be around $1,475 per month. Now consider next year’s projected rate of 3.55%. That same mortgage would cost you approximately $1,580 on a monthly basis. You’d be paying more than $100 more each month for 15 or 30 years, depending on the length of your loan term. Perhaps now you can see the advantage of acting sooner than later if you’re serious about perusing homes for sale in Central Florida.
The bottom line is that waiting around and hoping for a return to previously slashed rates would likely backfire. Expert predictions don’t see things coming back down. Rates remain low when you look at things in a historical context. By acting now, you stand to save a great deal of money. You’ll get more home for your dollar and enjoy smaller monthly payments.
Perhaps now is the time to meet with your lender to see just how much home you can afford. With your finances in order, you can work with a real estate professional to find the type of home you’re looking for at some of the best terms you’re likely to see in quite some time.