A FEW POINTS ABOUT INTEREST
RATES
Less is more
If you're new to investing or real
estate and don't know much about interest rates, here's
a good tip: the higher the interest rate, the more expensive
it's going to be. High interest rates mean you will
have to pay back more on the money you borrow. Another
good rule of thumb is that affordability increases if
you use an adjustable rate mortgage (it's easier to
qualify this way). Of course, there will be a wide range
of rates to choose from depending on the kind of financing
you select.
Not even the Fed knows for sure
The Fed holds a considerable amount
of power, but they can't control everything. Mortgage
interest rates are affected by many unpredictable political,
economic and social events. So there is no guarantee
what direction interest rates will go, despite the forecasts
of the experts. Therefore, make your financial decision
based on where things are today including your budget,
your needs and your future plans.
Locking in rates assures your lowest interest
If you do decide to lock in at a
certain interest rate, you will need to complete a loan
application and send it to your lender as soon as possible.
This must be done so that your commitment doesn't run
out before your loan is approved. Follow up and be sure
that the lender receives all of the necessary documentation.
Get a property appraisal, which usually costs about
$325, as soon as possible. Don't forget to get the interest
rate lock in writing.
Don't obsess and miss a good real estate deal
Although rising interest rates can
create more problems for home buyers, waiting and hoping
for low rates is not necessarily a smart move. You may
end up paying a higher price. Also, refinancing is always
an option in the event of interest rates coming down.
I would sincerely like to help
you with all your real estate needs. My extensive knowledge
of real estate investing, 1031 exchanges, quality of
home construction can save you thousands of dollars
when buying a home and dozens of hours looking for the
wrong home. Please do not hesitate to give me a call.
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