Mortgage interest rates have been on the rise in recent months, and are expected to continue increasing throughout 2018. This is something that all homeowners need to be aware of. If you are in the market for a new home, or are thinking about refinancing your current mortgage, now is the time to do it. Here are three things that you need to know as mortgage interest rates increase.
Mortgage Payments Will Be Greater
Mortgage interest rates have been on the rise for a while now and are only projected to continue going up. This is something that everyone should be aware of because it will directly affect mortgage payments. The higher the interest rate, the greater the monthly payment will be. This is something to take into account when budgeting for a home purchase or trying to refinance an existing mortgage. Keep in mind that even a small increase in interest rates can have a big impact on your monthly payment, so it’s important to stay up-to-date on where rates are headed.
Be Realistic About Selling
This year has been unpredictable in a lot of ways, but one thing that’s been fairly consistent is the rise in mortgage interest rates. If you’re thinking of selling your home, it’s important to be realistic about the process. Typically, selling a home can take months, even in a Seller’s market. You’ll need to be prepared to do some staging, negotiations, and probably a little bit of waiting. But if you price your home correctly and work with an experienced real estate agent, you should be able to find a buyer who’s willing to pay a fair price. So if you’re thinking of selling this year, don’t let the market scare you away- just be prepared for a little bit of a process.
You Can Refinance Later
As mortgage interest rates begin to rise, there is one important thing for homeowners to remember: you can always refinance when rates drop. Although it may seem like a good idea to lock in a low rate now, refinancing later on could save you even more money. By waiting to refinance, you allow yourself to take advantage of lower rates in the future. If you are worried about rising interest rates, remember that you have the power to choose when to refinance your mortgage. By being patient and waiting for rates to drop, you can ensure that you get the best possible deal.
Mortgage interest rates are on the rise, but there are still ways to save. If you’re in the market for a new home or thinking about refinancing your current mortgage, now is the time to do it. Be sure to budget for a higher monthly payment if interest rates continue to rise, and be realistic about selling your home. If you can manage these couple of things, then you are better prepared than most people.
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