One of the best ways to protect your financial future is to lock in the historically low interest rates that are still available today. According to real estate experts, buyers who forego home interest rates in the low 4%’s until next year or beyond will pay a significant price down the road.
Here’s what the experts predict for 2015.
Home mortgage predictions for 2015 3Q
- 4.6% – Fannie Mae
- 4.8% – Freddie Mac
- 5.2% – Mortgage Bankers Association
- 5.2% – National Association of Realtors
These may not seem like huge increases. But even an increase of half a percentage point can make a difference in your monthly mortgage payment.
Let’s look at what half a percentage point means
The monthly payment (principal & interest only) on a $250,000 home today, with the current 4.1% interest rate is $1,208.
The Home Price Expectation Survey projects that home prices will rise about 4% over the next year, making that same home cost $10,000 more, or $260,000.
If we take Freddie Mac’s rate projection of 4.8%, the monthly mortgage payment climbs to $1,364.
An extra $156 a month isn’t so bad, you say?
Well, how about $56,160 then? That’s the tally of $156 a month over the course of a 30-year mortgage.
And we’re sorry to say that it’s the very real cost of waiting until 2015 to buy a home.
Give us a call today at 971-804-4618. We know the Portland real estate market, we’re top-notch listeners, negotiators, problem solvers, and marketing pros–and we’re here for YOU.
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