In today’s current real estate market, mortgage interest rates are near record lows. If you’ve been in your current home for several years and haven’t refinanced lately, there’s a good chance you have a mortgage with an interest rate higher than today’s
average. Here are some options you should consider if you want to take advantage of today’s current low rates before they rise.
Sell and Move Up (or Downsize)
Many of today’s homeowners are rethinking what they need in a home and redefining what their dream home means. For some, continued remote work is bringing about the need for additional space. For others, moving to a lower cost-of-living area or downsizing
may be great options. If you’re considering either of these, there may not be a better time to move.
And, here's why.
Breaking It All Down:
- Today’s rates are below 3%, but experts forecast rates to rise over the next few years.
- If the interest rate on your current mortgage is higher than today’s average, take advantage of this opportunity by making a move and securing a lower rate.
- Lower rates mean you may be able to get more house for your money and still have a lower monthly mortgage payment than you might expect.
Using the chart above, let’s look at the breakdown of a $300,000 mortgage:
Refinance Your Current Home
- When mortgage rates rise, so does the monthly payment you can secure.
- Even the smallest increase in rates can make a difference in your monthly mortgage payment.
- As interest rates rise, you’ll need to look at a lower-priced home to try and keep the same target monthly payment, meaning you may end up with less home for your money.
- No matter what, whether you’re looking to make a move up or downsize to a home that better suits your needs, now is the time. Even a small change in interest rates can have a big impact on your purchasing power.
If making a move right now still doesn’t feel right for you, consider refinancing. With the current low mortgage rates, refinancing is a great option if you’re looking to lower your monthly payments and stay in your current home.
Please feel free to reach out to me personally with any questions related to buying or selling your home in the Dallas Fort Worth area at 817-952-9000.
Stay tuned for more blogs each week!