With interest rates continuing to be at historic lows, it’s easy to take them for granted. You don’t have to look too far back in history, though, to prove that this can be a costly mistake.
Use any simple online mortgage calculator, you’ll see that even a return to the 2011 average of 4.45% from the recent 2012 3.47% rate means a lot more money will flow from your wallet over the life of a mortgage!
What do the current low interest rates mean for Lafayette homeowners – and those who want to become one? Big savings, given the high value of real estate and resulting mortgages Lafayette buyers take on.
Are you planning to trade up or down in housing size? If you’ve only been waiting for home prices to go up to sell your home first, consider the following:
- Lower interest rates mean more buyers can afford your home at any price point. More buyer interest pushes values to top dollar.
- Once you sell, where will you live? Lower interest rates mean you can get more for your money, too, while locking in a rate that means long term cash savings for you and your family.
- All the while you wait to sell, you’re paying your current mortgage. Add that impact into your all-in cash decision process and ask yourself, do you save or lose cash if you wait?
Every family’s situation is different. I’d be happy to help you work through the timing of your real estate decisions. Contact me at (925) 339-1918 or Dana@DanaGreenTeam.com.
One final note: The numbers used in the Infograph are averages from the Freddie Mac Primary Mortgage Market Survey. Your experience may vary — and can even mean lower rates, depending on your credit rating. We know Lafayette families achieving recent mortgage refinancing rates under 3%.