Purchasing a Home Near Manhattan, Know Your Buying Power.
This way you can properly budget for the home of your dreams!
According to Freddie Mac’s most recent Primary Mortgage Market Survey interest rates for a 30 year fixed mortgage are at 4.09%. While that is still pretty low historically, they are on the rise. Purchasing a home near Manhattan, know your buying power.
If your looking into purchasing a home near Manhattan, know your buying power. Consulting a knowledgeable mortgage broker will put you on the right track. The interest rate you are able to secure when buying a home not only impacts your overall monthly housing costs but also impacts your purchasing power.
Simply put, purchasing power is the amount of home you can afford to buy within your budget. As mortgage rates increase the price of the house you may be able to afford will most likely decrease. Purchasing a home near Manhattan, know your buying power – it is critical so you know just what your money can buy you, even with the increased mortgage rates.
The value of the home you may be able to afford will decrease by 2.5% each quarter of a percent of increased interest rate. The chart below should help to clarify the interest rate increase and how it may actually effect your bottom line.
Economists are predicting that by this time next year the interest rates will increase substaintally to 5%. That is a very large increase for a homeowners mortgage. Decreasing buying power, greatly! If you are seriously considering purchasing a home, take advantage of the mortgage rates while they are still low. Make sure you have all your ducks in a row and can secure the interest rate that will set you up for homeownership and financial comfortability before the rates increase and decrease your buying power. After all, when purchasing a home near Manhattan knowing your buying power is half the battle…right?