Home buyers in the US should decide whether they want to avoid paying a higher interest rate on a 30-year fixed mortgage, which would increase to 5% next year based on an industry forecast.
If you’re planning to buy in Utah, a housing loan in Ogden may be a good choice as early as now before rates increase in the next two years. By 2020, the interest rate will slight stay the same at 5.3% for the same mortgage.
Despite the estimated growth in mortgage interest, the increase doesn’t seem too bad if you look at it from the angle of monthly payments. A $300,000 loan for this year with a fixed interest of 4.6% entails a $1,537.93 payment per month.
By next year, the same amount will involve a monthly installment worth around $1,610.46. The Mortgage Bankers Association provided the industry estimates, and rates may still change depending on the market’s movement.
When choosing a mortgage lender, consider the benefits of borrowing money from a credit union. The chances of loan approval could be higher, or they may offer lower rates than banks.
A broad price inequality for residential properties generally means that buyers have more choices, even if they have a limited budget. Buyers in New York have the most options, as prices in the state range from at least $65,000 to almost $1.1 million on average.
In Michigan, home prices cost between $33,000 and $420,000, while those in Connecticut range from $125,000 to more than $1 million.
A home purchase this year may be a good decision before mortgage rates increase in the near future, but it requires careful planning. How much interest are you willing to pay for a housing loan?