Interest Rates
Waiting for lower interest rates before buying a home? Consider the benefits of property appreciation. Real estate values tend to rise over time, potentially increasing your investment significantly. By delaying, you might miss out on both the perfect home and its appreciation potential.
Interest rates are important, but they're just one piece of the home-buying puzzle. It’s essential to also consider your financial health, market trends, and long-term goals.
Instead of waiting for the ideal interest rate, focus on the overall value of finding the right home now. With the guidance of a skilled real estate agent, you can navigate these factors effectively. And if rates fall later, refinancing is an option.
Higher Rates?
In a climate of rising interest rates, there's no cause for panic.
Understanding their impact is essential for buyers and sellers alike, setting the stage for what's to come. Patience and readiness are your best tools for navigating today's property market.
Empower yourself with knowledge, and when you're ready for that next step, assistance is just a conversation away.
Dropped Interest Rates!?
The real estate market is all about balance, and that balance is all based on supply and demand.
With higher interest rates, we’ve seen the demand for homes go down as potential buyers have said “...maybe later.”
But as soon as interest rates go back down, buyer demand is sure to tick back up. This will decrease the available supply and home prices will rise–along with the competition to get into those homes.
If it makes sense for you to buy a home now, then just go for it! There will always be something going on in the market, so buy when it makes sense for your situation.
Interest Rate Quote
Lots of things go into your interest rate quote.
Let’s go through the different factors that can affect your interest rate.
- Credit Score: The higher your credit score, the lower your interest rate will be in most cases.
-Loan Type: Different kinds of loans have different interest rates. Generally, FHA and VA loans will have lower interest rates than a conventional 30-year loan.
-Loan to Value: If you only need a $100,000 loan to buy a $300,000 home, you’ll get a better interest rate than you would if you needed a $275,000 loan for the same home.
-Property Type: Some properties, like condos and vacation rentals, are considered a more significant risk to the lender. The riskier the loan for the lender, the higher your interest rate will be.
What Determines My Interest Rate?
When it comes to buying a home, several factors can determine your interest rate.
Here are the top four:
➡️ Loan Type - Different loan types come with varying interest rates, depending on the lender's risk level.
➡️Credit Score - A higher credit score generally means a lower interest rate, showing that you are a responsible borrower.
➡️Down Payment - Putting a larger down payment on your home can potentially lower your interest rate, as it shows the lender that you have a lower risk of default.
➡️Loan Amount - Larger loan amounts can mean higher interest rates, as they present a greater risk to the lender.