Mortgage interest rates are near record lows in today’s real estate market. There’s a high chance that you have a mortgage with an interest rate higher than today’s average if you’ve been in your current home for several years and haven’t refinanced lately. The following options are the ones that you should consider if you want to take advantage of today’s current low rates before they arise.

Sell and Move Up (or Downsize)

A lot of today’s homeowners are rethinking what they need in a home and redefining what their dream home means. The continued remote work is bringing about the need for additional space for some and for others, moving to a lower cost-of-living area or downsizing might be better options. Are you considering either of these? There may not be a better time to move. Here’s why.

The following chart shows average mortgage rates by decade compared to where they are today:

Below 3% is today’s rate, however, experts forecast rates to rise over the next few years.

If your current mortgage interest rate is higher than today’s average, take advantage of this opportunity by making a move and securing a lower rate. You may be able to get more houses for your money and still have a lower monthly mortgage payment than you might expect - this is what lower rates can do for you.

Waiting could mean you missing out on this historic opportunity. The chart below is showing how your monthly payment will change if you buy a home as mortgage rates increase:

Breaking It All Down:

Referring to the chart above, let’s look at the breakdown of a $300,000 mortgage:

As mortgage rates rise, so does the monthly payment you can secure.

The smallest increase in rates can make a difference in your monthly mortgage payment. When interest rates rise, you’ll need to look at a lower-priced home to try and keep the same target monthly payment, meaning you may end up with less home for your money.

No matter what, if you’re looking to make a move up or downsize to a home that better suits your needs, now is the time. Even a tiny change in interest rates can have a big impact on your purchasing power.

Refinance

Does making a move right now still doesn’t feel right for you? Consider refinancing. For the current low mortgage rates, refinancing is a great option if you’re looking to lower your monthly payments and stay in your current home.

Bottom Line

Take a leap on the opportunity provided by today’s low rates before they begin to rise. If you’re thinking about moving up, downsizing, or refinancing, talk to My Tampa Agent today to discuss your options.

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