Contemplating the purchase of a new home but not sure if the time is right NOW to move ahead? Here is one BIG reason you might not want to wait!

Mortgage interest rates are low – the lowest they’ve been in over a decade. The trend in the financial market indicates a very good chance that they won’t go up this year. They could go higher toward the end of the year or maybe after the first of next year.

Why is that important to you? Selling or buying a home, the interest rates impact sales. They also have effect on sale prices and just one single percent in the rates can have a HUGE impact! Take a look:

That 1% may not change the monthly payment a whole lot, however, in the life of the loan, if paid over the full 30 years look how big those numbers can get!

The difference becomes a whooping one hundred seventeen thousand seventy four dollars!! ($117,074.00)
As a buyer wouldn't you agree that is a lot of cabbage to give away! To avoid overspending consider:

- Shopping around for the best mortgage deal. Not every lender offers the same products at the same rates.
- Locking in that rate once you get the lowest and best option available to you. If it isn’t locked in, you might end up paying a higher rate by the time of closing
- Did you know you can request a written guarantee your loan will be financed at the lower rate if interest rates drop by the time of your closing?

As a home seller here are possibly way you may be impacted by the 1%:

- Adjusted asking price might be needed to compensate for higher rates in order to keep your home an affordable option for buyers in the local market. Discuss these variables with your *local real estate agent* so you are prepared for market shifts
- Knowledge is power. The better informed you are about loan terms a buyer will be facing the better positioning in negotiations you'll experience
- Changes in interest rates may significantly alter the buyer’s ability to close on a purchase. Your representative in any transaction should be able to monitor that situation on your behalf to protect you from a lost sale

Whether you are saving for a down payment to buy a home or you are considering upgrades for a sale, those changes in interest rates can also mean changes to interest charged on credit cards and interest rates for your savings accounts. Keep that in mind when planning your real estate adventure!