Mortgage Rates Expected To Increase. If You Want To Buy, Now Is The Time

 

When you’re buying a home, you might think the price you offer is ultimately the price you’ll pay, but if you’re buying a home with a mortgage, that’s not the case. With a mortgage, in addition to paying your principal (the amount of money the bank loans you to purchase your home), you’ll also pay interest on that principal—which is why the interest rate on your loan is so important.

Interest rates on mortgages have been low in recent years, but they’re steadily rising. And even a minor increase in an interest rate can cost you big over the course of your mortgage. According to a recent article from Realtor.com, thanks to forecasted hikes to the Federal Reserve Key Interest Rate (which directly impacts interest rates on mortgages), mortgage interest rates are expected to continue increasing for the foreseeable future.

As the article demonstrates, even a small increase in your mortgage interest rate can spell major changes in your monthly payment. For example, if interest rates for a 30-year, fixed-rate mortgage increase by one percentage point from the current rate of 4.65%, you’ll pay a whopping $53,000 more over the course of your loan than you would pay if you purchased today.

The Takeaway: If you’ve been thinking about purchasing a home, do yourself a favor and make a move now before interest rates go any higher

Sellers, Take Note: A/C, Kitchens, And Energy Efficiency Top Criteria For Buyers

When you’re getting ready to list your home, you want to make sure any changes or renovations are going to give you a return on your investment by making your home more appealing to potential buyers. But what, exactly, are the things buyers are looking for?

According to Zillow’s 2017 Consumer Housing Trends Report, there are a few clear winners when it comes to upgrading your home to make it more appealing to sellers. According to the report, 62% of buyers require a home has air conditioning before they make a purchase. And while the perfect kitchen and an energy efficient home aren’t exactly “needs” for most buyers, they do rank high on their list of “wants” (at 48% for both).

The Takeaway

If you’re thinking about making changes to your home in order to generate more interest from buyers, your money would be best spent installing central air. Improving your kitchen and making your home more energy efficient come in a close second.