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?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
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