Rising Interest Rates: Trouble for Some Borrowers and What You Can Do About It

Interest rates are rising, which is good news for the economy and potentially creates challenges for you. There’s lots of headlines and financial experts talking about how rising interest rates disqualify borrowers, and how the business hast stalled because everyone isn’t moving, and how there is no end in sight.

With all of that news, it’s not hard to imagine why a first time home buyer would feel overwhelmed, and why an experienced home owner might feel discouraged. The reality is that higher rates are a good sign for the economy, and higher rates don’t have to stand in the way of you securing your next mortgage.

Ever since I got into the mortgage industry I’ve learned two things.

  1. The most important thing for borrower’s and their next mortgage is not the interest rate. It’s the monthly payment.
  2. People who wait for the right time to lock in a rate wind up never owning a home. Every reputable lender will offer you an interest rate within an eighth of a point of each other.

We have more debt as a country than ever before, and while most of the conversation has been focused on mortgage rates, increasing credit card interest rates are massively more expensive. Therefore, the average consumer is not as concerned about an interest rate on a 30 year loan (that on average is kept for less than 10 years), and what that loan will cost them every month is far more important.

That’s where my team can help. When you call us today, we’ll tell you if you need to act now, and develop a plan for you to secure your next mortgage. We can help, but we can’t help if you don’t call 312-751-1333!