DELMARVA – Mortgage rates are on the rise and we spoke with a local real estate agent who tells us what homebuyers should do about it.
Tori Lech with Coldwell Banker Resort Realty in Milford, Del. tells us, with interest rates rising and house prices stable, now is the time to buy. She says some buyers may be waiting for prices to go down, but if they wait for interest rates to go up, you’ll pay a lot more over the course of your loan. âLet’s say the prices go down, but the interest rates go up so the house you were looking at that cost $ 400,000 is now 360,000, but now your interest rate is 4%,â Lech explains. “So your monthly payment is going to go up, say $ 15 more per month, which doesn’t sound like a lot, but when you look at the interest paid over the loan, the 30 years is a big amount, it’s like Another 30,000, âLech adds,â That 1% increase in the interest rate can cost you a significant amount of money. “
We are told that if you buy a house for a higher price but a lower interest rate, you will have a cheaper monthly payment and paid a lot less. That’s why Lech says, “What you are seeing is a lot of sellers are profiting by selling and making a good profit by selling their home and using that profit to buy their next home.”
Lech also tells 47 ABC that if you are able to pay in cash, this is the best option.
If you’re looking to buy a home now, contacting a loan officer is a good place to start.
Jason Thomas (302) 382-6198 [email protected]
Ryan Hogate (302) 632-3192 [email protected]