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 look at where rates are headed when
deciding to buy now or wait until next year. Below is a chart created using
Freddie Mac’s February 2015 U.S. Economic & Housing Marketing Outlook. As
you can see interest rates are projected to increase steadily over the course
of 2015.
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. Research released by Zillow touched on this point:
“As rates rise, new home buyers will confront higher
financing costs and monthly mortgage payments. For many, this will mean
tightening their budgets and sacrificing some luxuries they may take for
granted today.”
The experts predict that home prices will appreciate by 4.4%
over the course of 2015. If both predictions become reality, families would
wind up paying considerably more for their home.
Bottom Line
Even a small increase in interest rate can impact your
family’s wealth. Meet with a local real estate professional to evaluate your
ability to purchase your dream home.
For All Your Teller County - Woodland Park, CO Real Estate Questions, Please Contact Debbie Railey, Home Finders Colorado For Free Market Advice By Calling/Texting
719-648-9903. Visit www.HomeFindersColorado.com
Life above the clouds - Teller County - Woodland Park, Colorado!
Debbie is your mountain lifestyle real estate specialist
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