In todayâ€™s real estate market, mortgage interest rates are near record lows. If youâ€™ve been in your current home for several years and havenâ€™t refinanced lately, thereâ€™s a good chance you have a mortgage with an interest rate higher than todayâ€™s average. Here are some options you should consider if you want to take advantage of todayâ€™s current low rates before they rise.
Many of todayâ€™s homeowners are rethinking what they need in a home and redefining what their dream home means. For some, continued remote work is bringing about the need for additional space. For others, moving to a lower cost-of-living area or downsizing may be great options. If youâ€™re considering either of these, there may not be a better time to move. Hereâ€™s why.
If the interest rate on your current mortgage is higher than todayâ€™s average, take advantage of this opportunity by making a move and securing a lower rate. Lower rates mean you may be able to get more house for your money and still have a lower monthly mortgage payment than you might expect.
Using the chart above, letâ€™s look at the breakdown of a $300,000 mortgage:
When mortgage rates rise, so does the monthly payment you can secure.
Even the smallest increase in rates can make a difference in your monthly mortgage payment.
As interest rates rise, youâ€™ll need to look at a lower-priced home to try and keep the same target monthly payment, meaning you may end up with less home for your money.
No matter what, whether youâ€™re looking to make a move up or downsize to a home that better suits your needs, now is the time. Even a small change in interest rates can have a big impact on your purchasing power.
If making a move right now still doesnâ€™t feel right for you, consider refinancing. With the current low mortgage rates, refinancing is a great option if youâ€™re looking to lower your monthly payments and stay in your current home.
Take advantage of todayâ€™s low rates before they begin to rise. Whether youâ€™re thinking about moving up, downsizing, or refinancing, letâ€™s connect today to discuss which option is best for you.