Loading ...Home Buyers: LOCK IN YOUR RATE
June 2nd, 2008 by Tyler | 947 views |
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Alright, if you have been on the search to buy a home, it’s time to buckle down and pull the trigger. You will want to lock in your rate now. The interest rates have spiked in the past 10 days and there is a potential danger that it could get worse. The average interest rate on a 30-year fixed loan has soared to 6.02% from 5.82% in just a week. The cause of this is the rising inflation fears that have sparked a jump on the long-term government bonds.
That means on a $300,000 mortgage, your monthly payments will increase $38 and the total interest on the life of the loan will increase $4,000. You can still get some good deals as there are a few lenders out there offering rates below 6%, but not many.
No one knows what is in store next, but if you find a reasonable deal, don’t think twice about putting a deposit to lock the rate in for a month or two if you are able.
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This entry was posted on Monday, June 2nd, 2008 at 1:17 pm and is filed under Interest Rates, Real Estate, Real Estate Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
June 7th, 2008 at 11:34 pm
It’s funny, rates spike to 6 point something percent. People still will not get off the fence. I wonder if rates will have to go to 8% then come down 1/2 and people will then wake up. The population is rate spoiled I am afraid
June 24th, 2008 at 3:58 pm
Yeah, I agree Curtis. This is amazing. Why would people pass on the opportunity to buy a home at such low prices with incredible rates… IT IS TIME TO BUY.