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Low Interest Rates Make Huge Difference on Your Purchasing Power

by Alan Daniels

Interest rates for a 30 year fixed rate mortgage are currently around 3.92% according to Freddie Mac's latest Primary Mortgage Market Survey which is still near record lows when comparing to the last 50-60 years.  Your purchasing power and the amount of home you can afford is greatly impacted by the interest rate you secure when buying a home so make sure to plan out your 2018 plans in a winning way.  

Purchase Power Defined - The amount of home you can afford to buy for the budget you have available to spend.  The price of house you can afford decreases as rates increase.  Note:  The same applies as housing prices go up.

The graphic below shows what impact rising interest rates would have if you planned to purchase a home within the national median price range, and planned to keep your principal and interest payments between $1,850-$1,900 a month.

Colorado Springs Homes For Sale - Buying PowerWith each .25 percent increase in interest rate, the value of the home you can afford decreases by 2.5% (this example shows $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.

Home Appreciation Factor - Homes locally could increase in value by around 6% in 2018.  So in this example your dream home of $400,000 could turn into $424,000 by year end pushing your purchase power even further down.

Conclusion:

Make sure you schedule a meeting with your Colorado Springs Realtor to better advise you on your plans and what is best for your situation no matter how far out your home buying plans are.​​

The Difference Your Interest Rate Makes

by Alan Daniels

Your interest rate when buying a home in Colorado Springs makes a huge difference.  Especially if you plan on staying in the home for a while.  Here is an extremely helpful Infographic so you can better understand the effects.

Contact us today to put a plan together.

Mortgage Rate Increase!

by Alan Daniels

There are countless forecasts that the interest rates are going to rise in 2016.   It is important to consider what rates will do if you are planning on purchasing a home in 2016 or beyond.  Below is a chart showing the forecasted rate increase which could impact your purchase power when buying a home.

Colorado Springs Mortgage Rates 2016

Now that you see where rates are forecasted to be here is a table showing how interest rates would impact the purchasing power of a prospective buyer on a $300,000 home.

Easy to see that if you are considering a home purchase, purchasing sooner rather than later will most likely make more sense financially over time.  Contact us today to put a 2016 plan together for you.

Mortgage Rates Update - Increase 2nd Straight Week

by Alan Daniels

Colorado Springs Mortgage Interest RatesMany forecasts indicate a steady mortgage rate increase through the end of the year and rates have been on the move up for the second straight week.

Rates on 30-year fixed-rate mortgages averaged 4.33 percent with an average point of 0.7 for the week ending Feb. 20,  which is up from 4.28 percent last week and 3.56 percent a year ago, according to Freddie Mac.

Rates are still at historic lows but are forecasted to increase steadily moving forward which will effect your buying power on the amount of home you can afford.  Now may be the right time to make a move on selling your home and buying another to lock in the interest rate. 

Renting a home currently?  Rents have been on the rise and are likely to continue increasing.  Especially if interest rates go up.  You will be surprised how much home you can afford now for the rent you are paying.

No matter where you are in the planning stages we highly recommend discussing your plans further to help you make the best decision for you and your family.  Feel free to contact us anytime to put a plan together based on your unique situation.Colorado Springs Real Estate Planning

Here are some helpful resources to help with the planning stage:

  • Instant Home Value Analysis - Click here for an Instant Analysis on your home value to give you an idea of what you have to work with.
  • CMA (Comparative Market Analysis) - Click here for a more in depth Analysis that we will complete for you personally.  This is much more accurate analysis.
  • View Every Home On Market - Click here to see over 4,000 homes currently on market.  This resource is great to utilize to see what is available in your price range.

Displaying blog entries 1-4 of 4

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