Welcome back to my video blog! I wanted to talk to you about the rising interest rates. A mere month ago we were at a 200 year low of the rates being in the mid to low 3% range. The rate now is about 4.5%.
Will
they go back down? It’s hard to say, but put this in perspective.
What does a one point raise mean? Well, if you are looking at
$250,000 home from last month to this month, your mortgage payment
went up about $80 a month.
To
crunch some numbers, an interest rate of 3.5% is about $4.50 per
thousand. So if you have a $100,000 home, it’s going to be about
$450,000 on your PITI. At 4.5%, you are at $5.07 per thousand. If
you look back a few years, though, we were at 8-9%.
Why
does all this matter? For most of us, buying a home is the most
important investment we make. If you are able to buy a $250,000 home
today and we have a 3% annual appreciation, in ten years that house
could be worth $336,000. That’s almost $100,000 in equity you have
built in toward your retirement.
So
now is the time to buy, to lock in that low interest rate. So
give me a call at 585.721 and let’s get started!
