Hudson Valley Musing

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“Does the Message of Higher Interest Rates Motivate Anyone?”

Is buying a home one of your near term goal?  Have you noticed interest rate is on the rise? Joe Petrowsky's blog gives an example of how much a delay can cost you in a year.  He took it one step further and showed what it would be over the life of the loan, simple staggering.

“Does the Message of Higher Interest Rates Motivate Anyone?”
 
I would have thought so, but I am getting a different message when I ask those that I am doing preapprovals for today. I ask why did you not start looking a few months ago? Are you aware rates have moved up over the last couple of months and could continue moving upward? 
 how far will the dollar go a year from now
Most of us in the mortgage and real estate business have shared the message of interest rates moving up and if you will want to buy a home, do it sooner rather than later. The message just doesn’t seem to resonate.  
 
I did a preapproval for a client yesterday, I had originally spoken to the client about a year ago. Very well qualified for the same $200,000 loan a year ago the payment of principal and interest would have been $898 and now the payment would be $1013, which means a difference of $115 and over 30 years that is $41,533.
 
OK, so where am I going with this, we may be saying the same thing a year from now and the payment may be $1136. Is that $41,533 not better off in your pocket rather than the banks coffers?
 
image courtesy of renjith krishnan/freedigitalphotos.net

Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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  162 Deer Run Road, Red Hook NY 12571| 845-758-6842| Cell 845-594-9947

  Jennifer Fivelsdal  |   Real Estate Broker  |  jennifer@jfivehomes.com  www.jfivehomes.com  or  www.midhudsonhomevalue.com

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Comment balloon 7 commentsJennifer Fivelsdal • August 13 2013 06:25AM
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