Should You Buy A Louisville Home Before Mortgage Interest Rates Increase?
They go up, they go down, then they go up again; this has been the norm for mortgage interest rates in 2015 but as we get closer to the fall the big question you should ask yourself is if NOW is the right time for you to buy a Louisville Home before mortgage interest rates increase again and the answer is yes.
Oh What a Difference 1% Makes
Did you know that although a 1% increase in mortgage interest rates amounts to an additional $145 on your mortgage payment the reality is that over 30 years this amounts to about $100,000 more that you will paying for your Louisville Home compared to if you were to stop waiting and buy now?
When Will Mortgage Interest Rates Increase For Real?
Although we still are enjoying mortgage interest rates near 4% right now, we could see a rate increase by the fall and the new mortgage interest rate could be 5% or higher by then, that’s why it’s best to get pre-approved for a mortgage loan now because you will be able to lock in your rate.
What to Do Before Buying a Louisville Home
If you’re ready to buy a Louisville Home now it’s important to use the following home buying process.
#1 – Get pre-qualified and pre-approved for a mortgage loan since both processes are separate but important parts of the home buying process.
#2 – Save at least 20% for a down payment on a home since this will help you to avoid paying PMI and make your monthly mortgage payment lower.
#3 – Shop for a home based on your budget (wallet), instead of your eyes because, you’re going to find lots of homes for sale across Louisville which have great features and amenities but if you go over budget by $10,000 or more that will make your monthly payment more expensive.
For more information about buying a Louisville Home contact us today by calling (502) 458-4100 or click here to connect with us through our website.