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What does it mean to you if mortgage rates go up in 2018? A lot, if you buy, and more if you don’t!

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.

Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next 12 months.

How Will This Impact Your Mortgage Payment?
Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year.

If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Global Property Systems says:
Even a small increase in interest rate can impact your family’s wealth. If you are planning on buying this year, acting now could save you a lot in interest payments down the road. If you’re putting off buying, you may miss your best chance for a favorable interest rate on your largest single investment. Meet with a Global, Property Systems Realtor to evaluate your ability to purchase your dream home.


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