Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Monday, April 25, 2022
So, you've been planning to and trying to buy a home for the past four months... but despite having made multiple offers, nothing has worked out yet.
This is not as uncommon as you might think -- there still seem to be many more buyers in the market as compared to sellers -- and thus, plenty of would be buyers haven't been able to convert themselves into actual real life buyers yet.
As a conscientious and responsible buyer you likely talked to your lender before you started your home search -- four months ago -- and you became pre-approved for a loan. Good work!
But... wait.... if you haven't talked to your lender since then... connect with them again ASAP!
Why, you might ask? Because interest rates have increased quite a bit over the past four months!
Buying a $400K house four months ago with 20% down...
- Interest Rate = 3.05%
- Mortgage Payment = $1,358 (before taxes and insurance)
Buying a $400K house today with 20% down...
- Interest Rate = 5.11%
- Mortgage Payment = $1,739 (before taxes and insurance)
As you can see, this fictional buyers would now be paying $381 a month more than anticipated because interest rates have risen quite a bit over the past four months.
The buyer very likely can still afford the new mortgage payment and will still be pre-approved to buy the house of his or her dreams... but the payment will be higher than expected, and nobody likes surprises.
So, if you are in the market to buy and haven't talked to your lender lately to get an updated estimate of your mortgage payment with today's rates... do so NOW!
