Goodbye to 3% mortgage rates?

Mortgage rates have seen an increase this month.  In fact, they are at the highest levels since the beginning of April 2012.  With interest rates increasing by about 1/2% within the last few weeks. 

1/2% may not sound like much, but analysts have said rising mortgage rates could spur some homebuyers who have been sitting on the fence to make up their minds to buy . 

So does this mean you should rush your home search, or increase your urgency to refinance?  Rushing to a decision isn’t the answer, but being proactive and strategic is.  Here is why you don’t want to put it off: According to the Mortgage Bankers Association, by the end of 2013, the interest rate on a 30-year fixed mortgage will be at 4.4 percent. And by the end of 2014, they see the rate reaching 4.6 percent.  If you are looking to buy, it is important to get pre-approved at today’s most competitive mortgage rates. 

Consider this:
Earlier this year Yahoo! Homes took a historical look at interest rates.  They evaluated the difference between the cost of borrowing money today, as opposed to in 1981.They compared a 30-year, $300,000 fixed-rate mortgage with a 1981 rate of 18.45 percent to one with a February 2013 rate of 3.51.*

 

	1981 Mortgage	Feb 2013 Mortgage
Loan Amount:	$300,000	$300,000
Interest Rate:	18.45 percent	3.51 percent*
Monthly Payment:	$4,631.56	$1,348.81
Interest Over Life of Loan:	$1,367,362.81	$185,571.33

 Even though interests rates have crept up since February of 2013, you can see, we are not in the same boat as we were in the past.  In 1981, your monthly payment would have been almost four times as much!  To see the full article, click on the link at the bottom.

Continue to follow my Blog or find me on Twitter to stay connected and informed.  And please, don’t hesitate to contact me if you have any questions!

Chris

*According to the "Weekly Primary Mortgage Market Survey®" by Freddie Mac

http://homes.yahoo.com/news/low-mortgage-rates-013524692.html