Interesting on interest rates

Mortgage Interest Rates_Tru Brit Realty Group_Keller Williams RealtyPORTLAND, ME: As interest rates have hovered around historic near record lows for the last few years both buyers AND sellers have felt the benefit. For buyers, a low fixed rate 30-year mortgage means they will be able to afford the most home for their money. For sellers, greater affordability translates potentially into higher asking/sales prices. However, as they say, “good things do not last forever.”

As the Federal Reserve ‘trigger finger’ continues to remain twitchy there really is no way for rates to go but up. The only questions remain are “when?” and “buy how much?”. The latest forecast from the National Association of Realtors predicts rates will rise in the remainder of this year and reach 5.3% next year, 2016.

Can you afford to wait to buy? The answer to the question often posed: “When is the best time to buy?” is simple really – when you can afford the most house for the least money. The truth is most people wait too long and miss their best opportunity.

For advice on the best strategy for purchasing the right property at the right price call us today, and Donna Saxby in the first instance, on 207-553-1384 or email donnasaxby@kw.com.

HINT: The difference in the monthly payment between a 3.7 % mortgage rate and a 5.3% rate on a $300,000 loan would be $285 a month ($1,381.00 vs $1,666 per month) and $102,000 over the life of a 30-year mortgage.

 

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