In the last few weeks, the average 30-year fixed mortgage rate from Freddie Mac inched up to 5%. The rates for RCFE mortgages are about .75% – 5.0% higher, depending upon the type of financing utilized. While that news may have you questioning the timing of your RCFE home search, the truth is, timing has never been more important. Even though you may be tempted to put your plans on hold in hopes that rates will fall, waiting will only cost you more. Mortgage rates are forecast to continue rising in the year ahead.
If you’re thinking of buying an RCFE home, here are a few things to keep in mind so you can succeed even as mortgage rates rise.
How Rising Mortgage Rates Impact You
Mortgage rates play a significant role in your home search. As rates go up, they impact how much you’ll pay in your monthly mortgage payment, which directly affects how much you can comfortably afford. Here’s an example of how even a quarter-point increase can have a big impact on your monthly payment (see chart below):
With mortgage rates on the rise, you’ve likely seen your purchasing power impacted already. Instead of delaying your plans, today’s rates should motivate you to purchase now before rates increase more. Use that motivation to energize your search and plan your next steps accordingly.
The best way to prepare is to call us TODAY for your FREE, no obligation consultation. We will develop a strategy, tailored to your individual needs, so that you will have a roadmap to realizing your real estate dreams. Contact Michelle J. London, CPA of RCFE Resource at 949-397-4506 for your complimentary facility valuation.
We can connect you with a trusted lender, help you adjust your search based on your budget, and make sure you’re ready to act quickly when it’s time to make an offer.
Serious RCFE home buyers should approach rising rates as a motivating factor to buy sooner, not a reason to wait. Waiting will cost you more in the long run. Work with the RCFE Resource team to understand your budget and how you can be prepared to buy your RCFE home before rates climb higher.
Let our RCFE Resource team of professionals bring proven expertise to help you get the highest sales price for your RCFE or ARF