Interest Rate – “act now” mentality

    One the the most motivating factors in any purchase is knowing you’ll get a better deal the faster you act. We’ve all seen it, interest rates are rising and in the long run they are expected to continue to move upwards. With this in mind buyers are begining to take advantage of money being “on sale” now and seeking to purchase before another rate hike. Secondarily, with the recent buyers market, buyers have been motivated to take advantage of buying now rather than waiting a few months or even a year or two. One of the strongest motivators for this activity is the idea that when you buy a more expensive house and you’re obtaining 5% off list price (what the current GR market is bearing) it’s a SLIDING scale. Imagine if you’re selling your house for $185,000 – you might be giving up on average $9250 (5%.) However when you go to purchase your new home of $250,000 you have a high likely-hood of obtaining 5% off that one, $12500 (5%) You’re ahead $3250. Factor in the competition that varies at different price levels and you may even be able to obtain even a higher percentage off.

    Keep in mind that typically once you have selected your property your lender can “lock” your rate and you can be assured of getting the rate you’ve been promised. The next step then – pick a property. There’s a lot to choose from but there’s no reason to drag your selection out for ever. Your home will only be more expensive the longer you wait – assuming it’s still there. Also, working with a experienced professional such as Ashley and myself will assist you in narrowing down your options and providing you with a selection of what you really want.

    What do you think is likely to happen in your case? Call or email Ashley and I and we’ll help you figure that out.

    Comments are closed.