Home Loan Rates up again…the time to refinance or purchase is now!
If you are thinking about buying a home or refinancing the one you have, you could save hundreds of dollars a month by doing so now.
For the 6th time since the end of the great Recession, the Federal Reserve raised the short term “overnight” rates banks pay to borrow money from the Federal Reserve to 1.75% last week. This translates into a 30-year fixed rate of 5.0% if a borrower has at least a 700 credit score.
Because we are in a “Goldilocks” economy of record low unemployment, low inflation and an all-time high stock market, rates are expected to continue rising in the next year to as high as 6.0%.
On a $ 250,000 loan, a 6.0% loan rate would be over $ 150 a month higher than the $ 1,342 a month principal payment at 5.0%. On a purchase for the same principal payment on $ 250,000 at 5.0%, you could only borrow $ 223,000 at 6.0%.
So if you are thinking of refinancing or purchasing a home soon, now is the time
to do so before interest rates go up any higher.
Call South Sound Home Loans at (360) 888-7442 to find out what you qualify for