In today’s real estate market, mortgage interest rates are near record lows. If you’ve been in your current home for several years and haven’t refinanced lately, there’s a good chance you have a mortgage with an interest rate higher than today’s average. Here are some options you should consider if you want to take advantage of today’s current low rates before they rise.
Sell and Move Up (or Downsize)
Many of today’s homeowners are rethinking what they need in a home and redefining what their dream home means. For some, continued remote work is bringing about the need for additional space. For others, moving to a lower cost-of-living area or downsizing may be great options. If you’re considering either of these, there may not be a better time to move. Here’s why.
The chart below shows average mortgage rates by decade compared to where they are today:Today’s rates are below 3%, but experts forecast rates to rise over the next few years.
If the interest rate on your current mortgage is higher than today’s average, take advantage of this opportunity by making a move and securing a lower rate. Lower rates mean you may be able to get more house for your money and still have a lower monthly mortgage payment than you might expect.
Waiting, however, might mean you miss out on this historic opportunity. Below is a chart showing how your monthly payment will change if you buy a home as mortgage rates increase:
Breaking It All Down:
Using the chart above, let’s look at the breakdown of a $300,000 mortgage:
When mortgage rates rise, so does the monthly payment you can secure.
Even the smallest increase in rates can make a difference in your monthly mortgage payment.
As interest rates rise, you’ll need to look at a lower-priced home to try and keep the same target monthly payment, meaning you may end up with less home for your money.
No matter what, whether you’re looking to make a move up or downsize to a home that better suits your needs, now is the time. Even a small change in interest rates can have a big impact on your purchasing power.
Refinance
If making a move right now still doesn’t feel right for you, consider refinancing. With the current low mortgage rates, refinancing is a great option if you’re looking to lower your monthly payments and stay in your current home.
Bottom Line
Take advantage of today’s low rates before they begin to rise. Whether you’re thinking about moving up, downsizing, or refinancing, let’s connect today to discuss which option is best for you.
Forbearance ends: Will Albuquerque homes come out distressed?
(Transcript Snippet): ” Tracy: We look at a lot of indicators. Right. And the thing came up yesterday. Someone asked the question about all of the homes in forbearance and that one. Yeah, there’s that one too. That whole question of all of a sudden a forbearance. And are we going to have a ton of houses come on. The market distressed? And our answer is Tego: No. In fact, the latest stats that came out this week on the whole forbearance and forbearance plans at down below 2 million, it was almost 7 million. At one point. Now it’s down to 2 million, probably going to have a lot more drop-off because there’s a bunch of them that expiration that expire in the next few months. And so either those people will you know, go into loss mitigation, meaning they’ll go into some sort of you know, foreclosure, or maybe you do some sort of workout with, with the bank or they’ll just pick up and start making their payments or they’ll refinance or they’ll sell. It just looks like most of those people that got into those forbearance plans are going to be able to come out of them without much difficulty, if Tracy: You’re a listener and you’re in a forbearance plan, you know, and you have questions about it, give us a ring Tego, or I would be happy to talk to you, you know, call the four, four eight, eight, eight, eight eight number. And just say, you want to talk to us about it because most people that are in forbearance, their house value has gone up over the last two years, year and a half. Tracy: You know, if, if you’re not going to be able to pay for your mortgage, you know, you probably have equity that Tego: We could help you with. And, you know, Tracy: There’s a lot of options to one of them and just real quickly as it might be that investor could buy your house and you could rent from them and not even move and have some cash in your pocket from selling your house. And we’re seeing that happen Tego: In New Mexico in the last year on average homeowners gained $26,000 in equity. Tracy: Where else can you get that? Right? You don’t get it by putting it in the bank. Tego: And, and so anyway, that’s that, that was just, you know, one thing to bring up.
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Forbearance ends: Will Albuquerque homes come out distressed?
(Transcript Snippet): ” Tracy:
We look at a lot of indicators. Right. And the thing came up yesterday. Someone asked the question about all of the homes in forbearance and that one. Yeah, there’s that one too. That whole question of all of a sudden a forbearance. And are we going to have a ton of houses come on. The market distressed? And our answer is
Tego:
No. In fact, the latest stats that came out this week on the whole forbearance and forbearance plans at down below 2 million, it was almost 7 million. At one point. Now it’s down to 2 million, probably going to have a lot more drop-off because there’s a bunch of them that expiration that expire in the next few months. And so either those people will you know, go into loss mitigation, meaning they’ll go into some sort of you know, foreclosure, or maybe you do some sort of workout with, with the bank or they’ll just pick up and start making their payments or they’ll refinance or they’ll sell. It just looks like most of those people that got into those forbearance plans are going to be able to come out of them without much difficulty, if
Tracy:
You’re a listener and you’re in a forbearance plan, you know, and you have questions about it, give us a ring Tigo, or I would be happy to talk to you, you know, call the four, four eight, eight, eight, eight eight number. And just say, you want to talk to us about it because most people that are in forbearance, their house value has gone up over the last two years, year and a half.
Tracy:
You know, if, if you’re not going to be able to pay for your mortgage, you know, you probably have equity that
Tego:
We could help you with. And, you know,
Tracy:
There’s a lot of options to one of them and just real quickly as it might be that investor could buy your house and you could rent from them and not even move and have some cash in your pocket from selling your house. And we’re seeing that happen
Tego:
In New Mexico in the last year on average homeowners gained $26,000 in equity.
Tracy:
Where else can you get that? Right? You don’t get it by putting it in the bank.
Tego:
And, and so anyway, that’s that, that was just, you know, one thing to bring up.
Buyers hoping for more homes to choose from may be in luck as housing inventory begins to rise. Many experts agree – new sellers listing their homes is great news for buyers and the overall market.
Although the supply increases are modest, more homes means more options for buyers. A rise in inventory may also help slow the price gains we’ve seen recently and could be a sign of good things to come.
If you’re searching for a home, rising inventory is welcome news. Let’s connect today to discuss new listings in our area.
The skyrocketing cost of building a home in Albuquerque
(Transcript Snippet): “Tracy: Right. But what we do know too, is there are a lot of new neighborhoods. We have a lot of new homes available right now and coming and a lot of new neighborhoods that they have now got ready, that they’re ready to start building. And it’s in all areas of town. Right. We know that they’re still building by the base you know, at the end of one to bow by the Kirtland air force space and [inaudible]. Yep. Tego: Yeah, no, there’s a lot in the pipeline and there’s definitely new construction. I, I will say. And I, I mean, this isn’t anything about the builders. It’s just, people are going to have sticker shock on what things are, because I just saw a study the other day, where they looked at a building costs in the last year, about 22% increase in just the cost of materials to build a new right. Tracy: And you know, we’ve talked about it on the show, the cost of materials that jumped way up, especially lumber, stucco, concrete, whatever. Tego: Well, everybody talks about lumber. Cause that’s, that’s the Tracy: Commodity that goes on the commodities exchange that they can really track. What really well, Tego: Here we go. Tracy. Here’s okay. So you have a chart. I’ve got a step for that. I didn’t even know that. No. So, okay. So we were talking about lumber, right? Lumber, 115%. Everybody kind of knows that story, but everything steel aluminum up 27% windows doors up 13% flooring up 8% appliances up 8% concrete up 10% brick stucco up 11% drywall up 14%. I’ve heard that one drywall Tracy: Framing block up 36%, Tego: 36%. So, you know, anything that’s concrete stucco that stuff’s gone up quite a bit. Of course, anything that’s wood-based has gone up a bit. Tracy: This is a year over year, raw material and labor cost. So we know labor has also gone Tego: Up. Yeah. So just to bring that back to the, the positive is there are a lot of new home construction options out there for folks right now. And you know, there, it’s just, the, the prices are higher. That’s just the way,
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Today’s rates are below 3%, but experts forecast rates to rise over the next few years.
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