Waiting On Lower Mortgage Rates Could Cost You

Recently, we've seen a time of historically low mortgage rates. Those numbers have started to rise a bit over the last year, so you might think you've missed out on the golden opportunity to score a great deal. The truth is, today's rates are still phenomenally low. Taking advantage of them now can save you quite a bit versus waiting for another drop.

The fact is, the current mortgage rates remain significantly lower than in previous decades. Don't worry about missing out on last year's records. You can still obtain more advantageous rates than your parents and grandparents saw. However, you'll want to act decisively if you want to get in on the savings.

It was in late September that mortgage rates crept back up to the 3% mark for the first time in several months. Real estate experts predict that rates will continue to climb as time progresses.

The fourth quarter of 2021 shows an average rate of 3.17%. Projections estimate that will rise to 3.55% over the next year. While that's less than a half percentage point increase, it can make a significant impact on your monthly mortgage payment. Let's take a rundown of the numbers.

Consider a loan of $350,000. At a rate of 2.99%, your mortgage cost would be about $1,475 per month. According to next year's forecast of 3.55% interest, the payment creeps up to approximately $1,580.

Do you really want to pay an extra $100 every month? Consider how much money that works out to be over the course of a typical 15 or 30-year loan, and you will probably want to reconsider your approach to home buying.

It's apparent that today's mortgage rates can save you a tremendous amount of money. They provide you the chance to get in on the savings if you act now before rates start inching higher.

If you're fairly confident that you want to purchase a home, it's worth it to act now. Waiting will only cost you. A good motivator may be to think about what you could do with that extra $100 each month. That much cash could go toward future home improvements, travel, college costs, or other worthy financial goals.

Now's the time to get in touch with your lender to find out just how much money you could qualify and what kind of downpayment you'll need. Securing funding in advance can help you in a seller's market. You'll also want to reach out to real estate professionals and begin looking checking out homes for sale in Dallas. Head to open houses. Compare prices in online listings. Spread the word to your network that you're looking for a house. You don't want to miss out on the opportunity to leverage today's continued low mortgage rates.