Are you asking yourself, should you act now with the low mortgage interest rates or wait to make a move? Realtors are often asked this question.
With mortgage interest rates still near record lows, many homeowners find themselves paying higher rates than today’s average. Steve Prescott with RE/MAX Capitol Properties offers several options to help buyers take advantage of the current low rates before they rise again.
Sell and either move up or downsize.
If the vision of your dream home has changed, if you want even more space or to downsize for a lower cost of living, there has rarely been a better time to do so. Mortgage rates are at a historic low, with today’s rates being near 3 percent. Lower rates mean more purchasing power for the buyer, resulting in a lower monthly mortgage payment. Who doesn’t love more “bang for their buck” in the long run? Taking advantage of low-interest rates could be the ticket to a better monthly mortgage payment.
Another option is to refinance.
Consider refinancing if moving isn’t an option, but lower monthly payments are desired. Refinancing is an excellent option for those who want to stay where they are while still taking advantage of low-interest rates.
The third option is to buy a home.
The most common feeling buyers may experience right now is concern that they will be buying a home on the very high side of the market. While that could be true throughout parts of the nation, Steve feels Cheyenne has a unique economy and diversification of employment. He feels coupling this with the community’s growth and the shortage of rooftops for sale will continue to increase market values and remain stable.
While interest rates have been falling over the past few years, experts are forecasting a rise soon. Waiting to take advantage of this opportunity could mean not securing a lower rate. Even a tiny increase in rates can change the monthly mortgage payment buyers could pay. High-interest rates result in fewer options for buyers, forcing buyers to shop for lower-priced homes that meet their monthly mortgage budget.
People also feel that the real estate market may hit a bubble, and property values will crash, creating a high number of foreclosures similar to what occurred in 2006-2009. The difference between then (The Great Recession) and 2021 is that mortgage companies recently have been conservative with their approvals and underwriting processes. According to Steve, if the market decreases in values or adjusts, any money that could be lost from a purchase in a higher market will be a cash loss and most likely not result in foreclosure.
RE/MAX Capitol Properties believes the time to act is now and has agents available to help those considering buying or selling. Call at (307) 635-0303, or visit the RE/MAX website.
Steve Prescott, Broker/Owner RE/MAX Capitol Properties, contributed to this article.