Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. With interest rates still low, locking in a low monthly payment now really makes sense.
Those thinking about a larger home should realize that waiting to make the move while mortgage rates are increasing probably does not make sense. As rates increase the price of the house you can afford will decrease if you plan to stay within a certain budget for your monthly housing costs.
With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by almost 3%. While no one can really forecast where interest rates are going, some experts predict that mortgage rates will be closer to 5% by this time next year.
Likewise, some are waiting for the value of their current home to rise before moving to the larger home. However, prices are rising across the board. If home prices increase the same percentage across all price levels, the price of the larger home you are looking to move to just went up by more than what you made on your smaller home by waiting a year.
If you are considering moving up to a larger home, or downsizing for that matter, give me a call. I can get you prequalified to see just what is your right price point for the larger home you have dreamed about at a mortgage level you are comfortable with!
Kelly Grawunder AK189785
Homestate Mortgage Company AK189191