By Kim Buish

Mortgage interest rates have been going up and down all year long but thankfully they’ve remained near 4% but what most Houston Texas Home Buyers want to know is what exactly do rising mortgage interest rates mean?

Rate Increases Will Increase Your Home Buying Cost

Let’s say that you want to purchase a home in Houston Texas and it costs $300,000 but you decide to wait six months to buy and mortgage interest rates increase by 1 percent.

Waiting 6 months to buy a home in Houston Texas will cost you about $145 more per month than you would pay with mortgage interest rates at 4% and this also adds up to about $100,000 more during the lifetime of your 30-year mortgage loan as well.

Yes, it pays to buy a home now rather than later especially considering that Federal Reserve Chairwoman Janet Yellen has predicted rate increases by this fall to 5% or higher.

If You Plan On Buying In Houston Do This

Before buying a Houston Texas home make sure you do the following:

1. Purchase your 3-in-1 credit report to check your credit score and start the dispute process if needed to resolve any inaccurate items.
2. Save at least 20% on a home because this will help you to avoid paying Private Mortgage Insurance (PMI) and save you money every month.
3. Pay off old debts like unused credit cards, school loans or department store charge cards since doing this will lower your debt-to-income ratio and make it easier for you to pay your mortgage each month.
4. Get pre-qualified and pre-approved for a mortgage loan.
5. Shop for a home based on your budget instead of letting your eyes tempt you into buying a home you can’t afford.

Buy Houston Texas Real Estate

To buy Houston Texas Real Estate contact me today, Kim Buish, Realtor® with Red Door Realty and Associates by calling me at (713) 819-1642 or click here to connect with me through my website.