Posted: May 6th, 2019
During the presidential election time frame, the interest rates for a home mortgage started to rise. As the state of the nation was unclear, depending on who would become the president. Rates started really increasing once the presidential election was completed and about year later the rates peaked. The rates have been decreasing though and are almost back to where they were before the election began. If you were considering a home purchase at that time, it might not have been a reality based on the interest rates. Now, interest rates are much lower, making it a great time to buy in Central Florida. Learning more about your options currently can help you to see if buying a new home can be a reality.
Lower Interest Rates = Better Time to Buy
When interest rates are low, it becomes a great time to buy. If you are a potential home owner, the time is now to try and find your dream home. When an interest rate is low, you are better able to afford a home. Some buyers will wait for a lower interest rate to spend more while others hope to have the lowest monthly mortgage rate possible. Whatever your goals, the low interest rates in central Florida can help you buy a home. Whether you are a first-time home buyer or want to move to a new location from your current home, now’s the time to seize the moment. With a lower interest, you can secure financing that won’t break the bank and even enable you to pay off your home sooner rather than later.
The first step to success is to be qualified for a home mortgage. You will do this via a lender. The lender will take a look at your current credit score as well as other financial details. You will then be told how much you qualify for regarding a mortgage loan. This helps in two ways. First, you know how much you can afford to spend on a home. Second, you will learn what interest rate you qualify for. You should be able to lock in your rate for a certain time frame, that way you can achieve the lowest rate possible for a mortgage loan while you shop for a new home. With this information, you can look at homes to purchase in certain price points. Let’s say you qualified for a $200,000 loan and an interest rate of 4.0%. This means that you can afford a monthly mortgage payment on a home at a max price of $200,000.
So, you could start your search in the lower range, perhaps starting at $115,000 and up to $200,000. This helps you to look at varying price points and hopefully finding your dream home in the process. By knowing your interest rate, you can then check to see what your mortgage payment will be based on the sale price of the home. This information helps you get a good estimate of your monthly mortgage payment to better save you money.
Once you have been qualified, you are ready to shop around. Finding your dream home will take work. By reviewing listed homes, you can get an idea as to what type of home you are looking for. While you may have an idea of what you need, once you start looking at homes, you will fully understand what you wish to have in your own home. Start by looking at homes that have the number of bedrooms and bathrooms you desire, in a location that meets your needs. View varying price points to see what works best for you. For some, a home that can be updated is a better option because the purchase price is lower. However, for others, the focus is on a finished and updated home. By looking at a few options, you can find what suits your family best and hopefully be on the path to home ownership as quickly as possible.
At TradaR Real Estate Solutions, we can help with any interest rate questions or concerns. Let our team of professionals assist you in your quest for a lower interest rate in.