Don’t Let Your “Luck” Run Out

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The 30-year fixed mortgage interest rate is currently still below 4%. Many buyers may be on the fence as to whether to act now and purchase a new home, or wait until next year, believing they still have time to lock in a low rate. If you look at what the experts are predicting over the course of the next 12 months, it may make the decision for you. Predictions for 2016 2Q: § 4.2% - Fannie Mae § 4.7% - Freddie Mac § 4.9% - Mortgage Bankers Association            § 5.3% - National Association of Realtors Even an increase of half a percentage point can put a dent in your family’s net worth. Let’s look at it this way… The monthly payment (principal & interest only) on a $250,000 home today, with the current 3.86% interest rate would be $1,173. If we take that same home a year later, the Home Price Expectation Survey projects that prices will rise about 4.4% making that home cost $11,000 more at $261,000. If we take Freddie Mac’s rate projection of 4.7%, the monthly mortgage payment climbs to $1,354. Some buyers might not think that an extra $181 a month is that bad. But over the course of 30-year mortgage you have spent an additional $65,160 by waiting a year. Looking to Buy, Sell, or Invest? Contact: David Demangos 858.232.8410 Locally Known, Globally Connected Luxury Home Marketing Specialist Global Property Specialist David@AwesomeSanDiegoRealEstate.com www.AwesomeSanDiegoRealEstate.com Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!