How Interest Rates Affect Your Home Purchase

2022-10-26T19:14:33-05:00

Your monthly house payment depends on many factors, including the interest rate on your mortgage. Here are some things to keep in mind about interest rates when you’re planning to buy a home. Rates Change Over Time The rate you can get on a loan today will likely vary slightly from yesterday’s or tomorrow’s rate. Over longer periods, rates can fluctuate dramatically. Interest on a 30-year mortgage topped 18% in 1981 and dipped below 3% in 2020. People will predict which direction rates are heading, but no one knows for sure. If you’re concerned rates will rise while you’re looking for a home, some lenders give you the option to lock in a rate for a period of time. Different Loans Charge Different Rates The interest on a 30-year fixed-rate mortgage is typically higher than the rate on a 15-year fixed-rate loan. Interest rates on adjustable-rate mortgages are usually even lower; however, as the name suggests, those rates can change over time. How Much Will a Loan Payment Change? The difference in a monthly payment depends not only on the loan’s interest rate but also the amount of money borrowed. A buyer who borrows $250,000 at 5% will pay $148 more per month than if the rate was 4%. On a $400,000 loan, though, the difference would be $237 each month. Interest rates are just one aspect of a mortgage, and a mortgage is one of dozens of considerations when you purchase a home. Working with a REALTOR® ensures that you have a professional at your side to guide you through the entire process.

How Interest Rates Affect Your Home Purchase2022-10-26T19:14:33-05:00

Share This: Projects to Leave to the Experts

2022-10-11T10:19:50-05:00

Whether you’ve purchased a fixer-upper or are tackling projects to get top dollar when you sell, “doing it yourself” can save money. But home improvement projects carry risks—some more than others. Consider these factors before you DIY. Don’t Make a Shocking Discovery Before you tackle any electrical job, you need to shut off power to the circuit you’re working on. Otherwise, you risk getting a nasty shock or worse. Make sure you can access the breaker box and verify which switch controls which area of the house. If you can’t safely work on the circuit or have any doubts at all, call a professional. Test the Waters Plumbing jobs can lead to leaks and flooding. A good first step is to test the water shutoff valve. Sinks and toilets usually have their own valves, but you may have to shut off water to the entire property to work on tubs, showers, and other fixtures. If your project doesn’t turn out as planned, you may need to shut off the water and leave it off until you get assistance. Know Your Limits You can find instructions for thousands of home improvement projects on the internet. But a YouTube video that shows how to build a deck doesn’t make you a carpenter. Before you start any DIY project, be honest about your ability and have a backup plan if things don’t go well. Certain DIY projects can improve your home and save you money. When you have real estate needs, however, trust a professional: Work with a REALTOR®.

Share This: Projects to Leave to the Experts2022-10-11T10:19:50-05:00

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