Don’t Let Your “Luck” Run Out

By The KCM Crew

The 30-year fixed mortgage interest rate is currently still below 4%. Many buyers may be on the fence as to whether to act now and purchase a new home, or wait until next year, believing they still have time to lock in a low rate.

If you look at what the experts are predicting over the course of the next 12 months, it may make the decision for you.

Predictions for 2016 2Q:

• 4.2% - Fannie Mae
• 4.7% - Freddie Mac
• 4.9% - Mortgage Bankers Association
• 5.3% - National Association of Realtors

Even an increase of half a percentage point can put a dent in your family’s net worth.

Let’s look at it this way…

The monthly payment (principal & interest only) on a $250,000 home today, with the current 3.86% interest rate would be $1,173.

If we take that same home a year later, the Home Price Expectation Survey projects that prices will rise about 4.4% making that home cost $11,000 more at $261,000.

If we take Freddie Mac’s rate projection of 4.7%, the monthly mortgage payment climbs to $1,354.

Some buyers might not think that an extra $181 a month is that bad. But over the course of 30-year mortgage you have spent an additional $65,160 by waiting a year.

The J Team Fort Lauderdale is committed to helping you buy a home while interest rates are still low!  While adding to your monthly payment may not totally hurt your bottom line I know even a small monthly payment increase can result in LARGE additional money spent buying your home.  

This is a great time to buy and sell with the purpose of buying a home with low interest rates.  Schedule your Home Buyers Consultation or Home Sellers Consultation with The J Team Fort Lauderdale today!  Call or Text 954.235.3589 or Search Fort Lauderdale Homes now at http://JTeamFL.com