We have all been warned that rates will start to eventually rise. No one really has the magic glass ball that will predict exactly when that will happen, but…we know it is coming. Now that the Federal Government is not purchasing bonds, they have warned that they will start to raise the “cost” of money,which will trickle over to mortgage rates. Should this matter to you? Certainly Should! Rates are a driving factor for many things. How much you can borrow, how much you will pay in interest, how much income you need to qualify and so forth. Lets use a simple little example.
$250,000 Home Purchase Price
If rates went up just 1/4% you would need an extra 3% in income to qualify for this same home, unless you purchased a home that is 3% less. As rates rise you will find that you as a borrower will qualify for less. This also means that over the course of a year you will pay more in interest! That little .25% increase will cost you almost $10,000 in additional interest over the course of your loan. Ouch!
If you have been tinkering with the idea of buying a home, it may be a good idea to call the best mortgage companies in fort lauderdale or your community and discuss your situation. Compare what you are currently paying in rent, what your down payment would need to be, what your mortgage payment would look like, and how much of a home can you qualify for. This doesn’t mean that everyone should go out and buy a home. When looking at Homes for Sale in Fort Lauderdale you need to consider the expenses of owning a home. Electric, Water, Cable, Lawn, Pool Service, Repairs and of course that fund for “oh No! The Hot Water Heater Broke”.
The advantages are of course a plus to most individuals. You get to write something off on your taxes! Everyone likes to get more money in their pocket during tax season. You have your own place, build equity and most of all you don’t have a landlord that you have to listen to. You can paint your living room pink if your heart desires it. Just paint it again if you plan on selling, I am begging you.
Talk to a Realtor and have them show you around areas that you like. Of course you will want to be Pre -Qualified first. It is never fun to be looking at Luxury Homes in Coral Ridge, and then find out that you can’t afford any of them.
Buying a home is a dream for many. You can’t mentally cross it out because you think you can’t afford it. You may be surprised.