Challenging Your Ideas About Interest Rates
Are rising rates truly all that bad? I’m challenging your assumptions.
Today I want to challenge your likely negative perception of rising interest rates. I am aware that they increase your mortgage payments, but sometimes we get stuck on the idea of having a 5% interest rate when we recently had rates of 3%.
"Don’t fall prey to the assumption that rising rates will hurt your wallet more than they actually will."
Interest rates have been around where they currently are for more than 10 years. When I first got into real estate back in 1999, interest rates were around 8.5%. I bought my first home at a 5% rate, and my next two were 3% and 2.8%, respectively. If I were to purchase a home today, I’d be looking at a rate anywhere between 4.5% and 6%, depending on my credit, debt-to-income ratio, and other factors.
Ultimately, today’s rates are still historically low, so don’t fall prey to the assumption that rising rates will hurt your wallet more than they actually will.
If you have questions about rising interest rates, how they affect your ability to buy a home, or anything else to do with real estate, give me a call or send me an email. I would love to have a discussion with you.