Homes in Springfield, MO - Selling and buying homes
2017 is fast approaching and the housing market is seeing a few changes with increased interest rates and fewer homes on the market, but don’t let this alarm you…higher interest rates are not all bad. Let me explain.
- Put rate increases in perspective…it’s not as bad as it sounds!
Rate increases raise monthly mortgage payments but probably a lot less than homebuyers expect. For example, if you are borrowing $350,000 with a 30-year loan at current rates of about 3.5 percent, your monthly payment is $1,571.66
Should your rate increase to .25% your payment would increase to $1, 620.90… this would yield a monthly increase of $49.24 per month.
- When interest rates increase banks have the ability to loan more, so stop freaking out and moving too fast. Improve your credit score first. A better credit rating will allow you to be competitive in the mortgage market and open the door to loans without PMI.
- With fewer homes for sale your home becomes a commodity on the market, driving prices up allowing sellers to get more for their home. Now don’t get crazy about this, your home will increase in small lumps not massive undertakings. Improving the sell ability will help with this increase. What is sell ability? It’s simple, put money into your home to make it look better to buyers but do not expect a return on that investment. For example:
- Clean gutters
- Clean carpets
- Fresh paint
- Clean windows
What to do next? Contact a local Real Estate agent, we can help answer all your questions and calm your fears about these things. We will also be happy to meet with local lenders to help you make the right decisions about your future.
When you’re ready …”It’s your move”