Mortgages and Interest Rates: How They Collide How They Collide
What happens at the meeting place of mortgages and interest rates?
Does one have a significant impact on the other? The answer is a resounding yes. In fact, the state of interest rates can be one of the greatest determining factors in whether or not buying a home is even a good idea at that moment.
The slightest upward tick of interest rates can lead to an exponentially more expensive endeavor. While owning a home is a beautiful thing, it’s not worth it if it’s going to place unbearable financial strain on you.
A History of Interest
Now, when you compare today’s interest rates to that of the 80’s and even the 90’s, there’s a wide margin.
Rates reached well into the double digits back then, and thankfully we haven’t seen them climb that high since. But, once you factor in things like inflation, that doesn’t mean that right now is the best time for buying for you.
At the moment, rates are right above 5%. If you’ve managed your money and credit well, and built up the proper financial nest egg, you’re likely ready for the purchase. Just be sure to keep these good financial habits going so that once you take the responsibility on, you’ll be covered. There are a resounding number of new expenses dropped into your lap, and it’ll take financial soundness to keep up with them.
Some of these new expenses include maintaining your home’s integrity, ever increasing utility charges, insurance, and more. Things can get overwhelming fast, which is why it’s good to have dependable help in your corner.
That’s where LeapFrog Mortgage offers its maximum value. Our lenders aren’t only here to sell you on one of our mortgages. We work side by side with you to ensure you’re getting the utmost value for your time and money.