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Shayne Stone

Champions Real Estate Group
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What You Should Do Before Interest Rates Rise

July 23rd, 2021


In todays 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 todays average. Here are some options you should consider if you want to take advantage of todays current low rates before they rise.

Sell and Move Up (or Downsize)

Many of todays 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. Here's why.

The chart below shows average mortgage rates by decade compared to where they are today:WhatTodays 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 todays 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.

Waiting, however, might mean you miss out on this historic opportunity. Below is a chart showing how your monthly payment will change if you buy a home as mortgage rates increase:What

Breaking It All Down:

Using the chart above, lets look at the breakdown of a 300,000 mortgage:

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.

Refinance

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.

Bottom Line

Take advantage of todays low rates before they begin to rise. Whether you're thinking about moving up, downsizing, or refinancing, lets connect today to discuss which option is best for you.

Content previously posted on Keeping Current Matters


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Disclaimer : The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®

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I've been in some form of real estate since my early days! And now with all my expertise, I can enjoy helping those that want to either purchase / sell their first home or investment properties...
Champions Real Estate Group
245 Commerce Green Suite 151, Sugar Land, TX 77478   Get Directions
Phone: (713) 785-6666
Fax: (713) 785-6631
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