Today we're on location to get our preferred lender Mike's expert opinion on the topic of interest rates. We'll discuss how rate changes affect home buyers.
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Today we're out at Genesee Regional Bank with Mike Davis, who is one of our preferred lenders because he always does a fantastic job for our clients. Today, we want Mike to join us to talk about rising interest rates and what they mean for any potential home buyers in the Rochester area.
Interest rates are a hot topic right, Mike says, because they've gone up a full 1% since this time last year. What does that mean to the average buyer, exactly? If you bought a $200,000 house now as opposed to back then when rates were 1% lower, your monthly payment would be about $110 higher.
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Every time interest rates go up, your buying power goes down.
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According to Mike, when it comes to buying power, the same thing holds true if rates continue to go up in 2017. A buyer who qualifies for a $200,000 house now may only qualify for a $175,000 house if interest rates went up another 1%.
As you can see, if you're looking to buy a home, it's much better to buy now than to wait and risk another interest rate increase.
Thanks to Mike for joining us today to talk about rates. If you have mortgage questions or you're interested in obtaining a home loan, give Mike a call at 585-329-1183 or email him at mjdavis@grbbank.com.
If you have any real estate questions that we can answer or you're ready to buy a Rochester home, we'd love to help you. Just give us a call or send us an email.
