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How Changing Mortgage Rates Affect Affordability
The Best Way To Keep Track of Mortgage Rate Trends
If you’re thinking about buying a home, chances are you’ve got mortgage rates on your mind. You’ve heard about how they impact how much you can afford in your monthly mortgage payment, and you want to make sure you’re factoring that in as you plan your move.
The problem is, with all the headlines in the news about rates lately, it can be a bit overwhelming to sort through. Here’s a quick rundown of what you really need to know.
The Latest on Mortgage Rates
Rates have been volatile – that means they’re bouncing around a bit. And, you may be wondering, why? The answer is complicated because rates are affected by so many factors.
Things like what’s happening in the broader economy and the job market, the current inflation rate, decisions made by the Federal Reserve, and a whole lot more have an impact. Lately, all of those factors have come into play, and it’s caused the volatility we’ve seen. As Odeta Kushi, Deputy Chief Economist at First American, explains:
“Ongoing inflation deceleration, a slowing economy and even geopolitical uncertainty can contribute to lower mortgage rates. On the other hand, data that signals upside risk to inflation may result in higher rates.”
Professionals Can Help Make Sense of it All
While you could drill down into each of those things to really understand how they impact mortgage rates, that would be a lot of work. And when you’re already busy planning a move, taking on that much reading and research may feel a little overwhelming. Instead of spending your time on that, lean on the pros.
They coach people through market conditions all the time. They’ll focus on giving you a quick summary of any broader trends up or down, what experts say lies ahead, and how all of that impacts you.
Take this chart as an example. It gives you an idea of how mortgage rates impact your monthly payment when you buy a home. Imagine being able to make a payment between $2,500 and $2,600 work for your budget (principal and interest only). The green part in the chart shows payments in that range or lower based on varying mortgage rates (see chart below):
As you can see, even a small shift in rates can impact the loan amount you can afford if you want to stay within that target budget.
It’s tools and visuals like these that take everything that’s happening and show what it actually means for you. And only a pro has the knowledge and expertise needed to guide you through them.
You don’t need to be an expert on real estate or mortgage rates, you just need to have someone who is, by your side.
Bottom Line
Have questions about what’s going on in the San Antonio area housing market? Let’s connect so we can take what’s happening right now and figure out what it really means for you.
Financial Fundamentals for First-Time Homebuyers
Are you prepping to buy your first home? If so, one of the steps you should take early on is making sure you’re financially ready for your purchase
Here are just a few of the financial fundamentals you’ll need to focus on as you set out to buy a home.
Build Your Credit
Your credit is one element that helps determine which home loan you’ll qualify for. It also impacts your mortgage interest rate. While there are many factors that go into your mortgage application, a higher credit score could lead to a lower monthly payment in the long run.
So how do you make sure your credit is in the best shape possible when it’s time to buy? A recent article from NerdWallet lists a few tips you can use as you work to build and strengthen your credit. They include:
- Tracking your credit and disputing any errors that show up on your reports.
- Paying your bills on time. This includes making loan payments and paying down any open lines of credit.
- Keeping your credit card balances low. Paying more than your minimum monthly balance when you’re able can help.
Automate Your Savings for Your House Fund
You might also be wondering how you can achieve your down payment savings goals. Bankrate provides buyers with a number of tips to help you save, including searching for down payment assistance programs and ways you can save more, faster. As the article says:
“One of the best ways to save for anything — including a down payment — is to set it and forget it. If you receive a regular paycheck, ask your employer to direct a portion of that payment into a savings account. If you’re a freelance worker or independent contractor, set up a recurring transfer from a checking account to a savings account to establish the routine.”
Get Pre-Approved
As you prepare for your purchase, you’ll also need to have a good grasp on your budget and how much you’ll be able to borrow for your home loan. That’s where the pre-approval process comes in.
Pre-approval from a lender lets you know how much money you can borrow for your home loan. And having that knowledge, plus an understanding of your savings, can help you decide on your target price range for a house.
From there, you can start browsing for houses online and see what’s available in your area in that general price point. This can help you really understand your options so you can start to picture your future home.
For Customized Advice, Build a Team of Professionals
Finally, the best way to make you’re prepared for your purchase is to connect with trusted real estate professionals. Having expert advisors in the industry will help you make strong decisions throughout the homebuying process based on your specific goals, finances, and situation. They know the market and can guide you toward the home of your dreams.
Bottom Line
If you’re ready to get the homebuying process started, let’s connect so you can begin to build your team of professionals today.
Spring Home Buyer and Home Seller Guides Available
Our latest home buyer and home seller guides provide the most current information that can make buying a home or selling a house a confident decision for your family.
To get insight into the current real estate market that will help you make an informed decision to take the next steps simply request your free home buyer or home seller guide through the links below.
Whether you are ready to buy or sell a home right now, or thinking about when would be the right time for you to make a move, there are a lot of things to consider. Our Guide to Buying a Home and Guide to Selling a Home offer insight into what’s happening in the housing market today, what you need to know before you buy or sell a home, what to expect and how to reach your real estate goals.
If you are a home owner curious about whether this could be the best time for you to sell your home and what you need to know about selling in this current market this Home Seller Guide will provide you with valuable insights to help you make an informed decision and take the next steps. Request your Free Guide to Selling Your Home with information on the real estate market today at http://SanAntonioHomeSeller.info
Whether this is your first time buying a home or you want to learn more about the home buying process, the home Buyer guide will offer you valuable insights into successfully buying a home in today’s market. Request your Free Home Buyer Guide at http://SanAntonioHomeBuyer.info
If you are thinking of buying or selling a home in the San Antonio metropolitan area, and want to learn more about to safely buy or sell home at this time and work with a trusted San Antonio REALTOR® throughout the process, contact Trudy Edwards of KELLER WILLIAMS Realty Heritage, at (210) 595-9801, or by email at TrueSARealEstate@gmail.com.
New Program Solves the Problem of How to Buy a House Before Selling Your Current House
Many homeowners want to sell their home and buy a new home but wish that they could buy their new home and move in first prior to putting their home on the market.
If your home no longer meets your needs and you have asked the question of how to buy a house before selling your current house, a new program available in limited markets across the country and just introduced in the San Antonio area may be the solution you are looking for.
Unlike traditional home sales where sellers can miss out on their dream home while waiting for their current home to sell, with the Knock Home Swap™ eligible homeowners can buy and move into their new home before selling their existing home. Knock Home Swap helps reduce the stress sometimes experienced when selling a house and buying a house at the same time because approved homeowners can make a strong, non-contingent offer on the new house and experience less uncertainty throughout the process.
One of the challenges typically experienced by homeowners who are selling a house and buying a house at the same time is that once they have a contract on their home they may not have a lot of time to choose and buy their new home. When they are under contract their agents will have to carefully coordinate and pay attention to the closing and occupancy timelines as a delay with one buyer will affect the other. The Knock Home Swap program removes that stress because the homeowners will have plenty of time to locate, buy and move into their new home before listing their current home for sale.
Another benefit of the Knock Home Swap program is that it provides eligible homeowners up to $25,000 in funds to prepare their current home for sale to help it attract more buyers, attract higher offers and sell quickly. Working with a Knock certified agent and the Knock concierge team the homeowners will select contractors from Knock’s network of prescreened contractors or choose their own to complete the improvements prior to listing the home for sale with their Knock certified agent. Knock will advance up to $25,000 to pay the contractors for the home improvements which will be repaid to Knock once the home has sold.
One element of the program that makes it perfect for today’s market is that because homeowners will be able to put their home on the market their home after they have moved out they won’t have to worry about having people coming through their home for preparation or showings while they are still living there. This means that the risks of exposure to COVID-19 through the home sale process are reduced for the homeowners.
The Knock Home Swap program adds additional convenience for the homeowners in that the entire lending, buying, and selling process is streamlined and the homeowners will only have one mortgage to pay while they are living in their new home and selling their old home.
If you are a homeowner in the San Antonio area and have been seeking answers as to how to buy a house while selling your own home, the Knock Home Swap program could have the answers you have been looking for.
To learn more and see if you and your home qualify for the Knock Home Swap program contact, Knock certified agent, Trudy Edwards, REALTOR with Keller Williams Heritage or click here to learn more
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