The First Time Home Buyer Shouldn’t Fear Higher Mortgage Rates

Getting a mortgage loan for under 4%, used to be about as likely as spotting a unicorn eating dinner with BigFoot.

But one good thing the pandemic gave us was historically low interest rates – sending many after the dream of home ownership. Sadly, every party must come to an end.

Interest rates have started climbing back from where they’ve dwelled for the last decade. The Mortgage Reports website stated that mortgage rates on a 30-year fixed mortgage were 5.25% in mid-May.

Mortage Rates and the First Time Home Buyer

Should first time home buyers rush to get a mortgage before they rise too far?  Are these rising mortgage interest rates a reason to hold off on buying a home? Or should buyers take a deep breath and jump into the sea of homeownership even with higher interest?

How Much do Mortgage Rate Increases Affect Mortgage Payments?

It may shock first-time homebuyers that a slight increase in the mortgage interest rate doesn’t generate much of a change in what they’ll be paying every month.



Investing in Real Estate or Buying a New Home?

Learn About Emerging Trends In: Mortgage rates  Buyer demand Home values Real estate investor trends

Alonzo Stanley, a Mortgage Loan Officer for Bell Bank Mortgage, recently walked us through the numbers. “A rate change of half a percent (.5%) can reduce your purchasing power.

Should The First Time Buyer Go Ahead with Their Plan?

Assistant Vice President of First Horizon Jamie Rice‘s advice was succinct: “buy.” He explains, “everyone is still buying. If you wait, someone else will buy it.

There was a report by the Builders Association that stated even if every builder constructed houses at maximum capacity, there would still be a housing shortage at the end of 5 years. The longer someone waits, the more they will pay.”

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