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Today, we have a very special guest! Phil Lillge of Parker Mortgage Group, our preferred mortgage lender, joins us to discuss how interest rates affect buyers in the Indianapolis marketplace.
Many buyers don't realize that a small
jump in interest rates will greatly affect the purchasing power of buyers. Right now, interest rates are at an all-time low, and it's only a matter of time before they begin to start creeping up. When we bought our home, interest rates were around 9% for a 30-year fixed-rate mortgage! You can currently lock in a rate as low as 3.5-4%!
As home prices and interest rates rise, the amount of home you can afford is negatively affected. When lenders take a look at your debt-to-income ratio, higher rates will mean higher payments, which means you will have a less favorable ratio when looking to buy a home. The overall expense of interest over the life of the loan will also be factored in, and will affect your ability to afford the home you desire. Bottom line: the cost of waiting to make your move is substantial!
If you would like to take advantage of this fantastic market, or if you need real estate assistance of any kind, give us a call or shoot us a quick email. We would love to hear from you!
Many buyers don't realize that a small
jump in interest rates will greatly affect the purchasing power of buyers. Right now, interest rates are at an all-time low, and it's only a matter of time before they begin to start creeping up. When we bought our home, interest rates were around 9% for a 30-year fixed-rate mortgage! You can currently lock in a rate as low as 3.5-4%! As home prices and interest rates rise, the amount of home you can afford is negatively affected. When lenders take a look at your debt-to-income ratio, higher rates will mean higher payments, which means you will have a less favorable ratio when looking to buy a home. The overall expense of interest over the life of the loan will also be factored in, and will affect your ability to afford the home you desire. Bottom line: the cost of waiting to make your move is substantial!
If you would like to take advantage of this fantastic market, or if you need real estate assistance of any kind, give us a call or shoot us a quick email. We would love to hear from you!
