Saturday, September 30, 2017

Buyers Today's Rates are a Gift, waiting for You!

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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