It's true rising interest rates can make a big difference in your monthly mortgage payment. But interest rates are only one factor in the cost of financing a home. The market changes that typically come with rising rates can be beneficial and even help mitigate higher payments.

Low-Rate Environment vs. Average Rate Environment

Low-Rate Environment

In a low-rate environment, buyers are likely to rush to the market. That creates stiff competition, which can lead to a frenzy of bidding wars and rapidly rising prices.

Average Rate Environment

In a calmer environment, you’re less likely to compete against other buyers. You’re more likely to:

• Have time to see and compare homes.

• Negotiate on price.

• Receive seller concessions, such as a credit towards closing costs or funds to reduce your rate.

• Enjoy the safety of important contingencies like home inspections and mortgage financing.

• Avoid making a rash decision you may regret later.

In fact, a lower price at a higher rate can be comparable to paying an inflated price at a lower rate. In other words, the real cost of a home today may be no different than it was when rates were lower, but competition was fierce and prices were at a premium.

If you’re comfortable making the payment you secure today, you can have peace of mind knowing your monthly cost will be even easier to make if you’re income rises. And if rates fall, refinancing can help you save even more.

History shows there’s one thing that rates don’t change about the housing market. It’s proven true whether mortgage rates were at their peak, at historic lows, or hovering around their average. Home values tend to rise over time.

We can’t predict the future as populations increase and the amount of buildable land stays the same, it’s likely values will keep going up over time. And when home values rise, homeowners gain equity and build wealth.

Bottom Line:

If you’re considering a move, don’t let rates hold you back. You may be surprised at the tools we have to help you reach your goals, no matter the market. A pre-approval at today’s rate is a great place to start. Reach out when you’re ready.

No need to back away from reverse mortgages!

Reverse mortgages have grown up in recent years. Our clients aged 62 and older most often use them as a safe option in two instances: 

• They have accumulated much of their wealth in their home and would like to access equity without selling.
• They want to purchase a new home without making a monthly principal and interest payment or touching other investments.

Plus, if clients want to pass the home down to their children, it can stay in the family. Heirs pay the amount owed or 95% of the home's appraised value, whichever is less.

Click here to learn more about Reverse Mortgage and Reverse Mortgages for Home Purchase.

Reverse Mortgage Resources:

• Why Reverse Mortgages?
• What to Expect While a Reverse Mortgage is in Process
• Reverse Mortgages: Clearing Up Comming Mtyhs
• Reverse Mortgages for Home Purchase

Questions? Want to see if you qualify? Reach out to the Greenway Team today.