Whether
you believe this "#" is a "hashtag" or a "pound"
sign, the information and chart below will be of interest to all. Believe
it or not, the historically low interest rates we have enjoyed for many years
are still historically low by comparison at right around 4%, where we are today
and they really are a true gift!
If
you think the symbol is a hashtag, then you may think these historically low
interest rates are here to stay because you haven't been through what the pound
sign people have. For the pound sign people, this may bring back some not
so good memories, but at least they are aware that interest rates can and will
fluctuate. The
graph below shows some historical interest rate time periods
and the impact rising interest rates can have on your monthly loan
payment.
My
point is, the chance of interest rates going down from where they are today are
slim to none. In fact, the interest rate forecast by Kiplinger predicts
the feds will probably take the interest rates up in December and two or three
more times in 2018.
If
you are currently renting and plan on living in California for the next 5 years
or more then consider this.
- For the past 5 years, homes have increased in value by
an average between 5-6% per year in Orange County.
- Renters receive no benefit from these increases from an
investment or tax deduction standpoint
- Monthly rents in OC keep sky rocketing at each
renewal.
- Finally, as mentioned above, there is a good chance
interest rates are only going to go up.
Here
is my question, if you haven't spoken to a lender in the last year or two and
want to be a home owner, what are you waiting for? No one, except
cash buyers can buy a home without a pre-approval letter. Lenders have
great programs to help get people get into a homes even if you don't feel you
have enough down payment or your credit is not the best. At a minimum they will
guide you with what to do so you can get that pre-approval letter.
If
you need some recommendations on some great lenders I have worked with or you
are already pre-approved and need help with locating the perfect home for you,
please give me a call. I would love to help in either case.
If you need some recommendations on some great lenders I have worked with or you are already pre-approved and need help with locating the perfect home for you, please give me a call. I would love to help in either case.
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