Home Interest Rates Got You Down?  Can You Afford to Buy a Home Right Now in Virginia?


Here is the Big Picture!

Home Interest rates rising so quickly in such a short time has scared and shocked first-time home buyers. However, the truth is an interest rate of just over 7% is simply nearing the historical average.

According to Freddie Mac, the long-term average for mortgage rates is just under 8 percent going back to 1971.

Buying a home is an investment and there are so many different reasons for wanting to buy a home. Current interest rates should not deter buyers from fulfilling the dream of home ownership.  Be sure to shop around for the mortgage lenders with the BEST Interest rates for your situation.  Not all lenders are created equal.  Some have the best rates, some have the fastest turnaround time and others focus on buyers with low credit scores.

Everything is relative. Current Interest Rates are higher than they have been, but home prices are dropping lower as well. Previously, you had the opportunity of a great interest rate, but home prices were astronomical. In the end, things balance out, so there truly is no reason to fear current interest rates. Instead, embrace the lower home prices.

The same will always hold true. Buy what you can afford. 
 

  What mortgage can I afford?

$


Also, remember that you can always refinance down the road if rates drop significantly.
Here you can calculate your Monthly Mortgage Payment


Compare the difference between your old interest rate and new interest rates?

$
%
%
%
Monthly principal and interest payments
at 3% interest
$1,518
at 6.9% interest
$2,371
Monthly difference
+$853
Note: Calculations are based on a fixed 30-year mortgage. Calculations ignore mortgage insurance, closing costs, HOA fees, property taxes and other payments.