Interest Rates: How that can deeply affect the home you can afford NOW

What’s the deal?

There’s a new generation of homebuyers who might find what I’m about to say about mortgage interest rates hard to believe.

You’re getting a smoking deal.

Sure, it may not feel like it when you’re committing to that 30 year mortgage. And it may not be the traditional mortgage that homeowners were looking to obtain on days gone by. Nowadays, possible homeowners can look to sites like Amerinote Xchange to see how a purchase money mortgage, whereby you’re entering a contract with the sellers directly instead of the bank, could be a better option for them instead. With that being said, you can never go wrong with a traditional mortgage.

But with interest rates staying around the 4% mark, you’re in much better shape than your parents or grandparents who remember when they were locking in a rate of about 15%.

Fifteen percent.

That’s huge. Think of how that affects your payment and your bottom line. AND think of how it affects the housing market as a whole. Inventory is down due to more people moving to the Denver area and more and more people staying where they are, using their home’s equity to make changes and increase value.

And while Denver might see a small increase in interest rates…it still won’t be enough to slow down the demand.

The Denver Market

“The current trend shows small, steady rate increases,” says Heather Currie at Fairway Mortgage. “That trend, in conjunction with rising home values in Denver, means we will see the buying power of clients decline and may prevent many from purchasing a home. So the client today who may be able to afford a $400,000 home based on current interest rates…by next year may only qualify for a $325,000 home. We all know there aren’t many homes available in Denver at that price point.”

So, what’s the bottom line?

If you’re thinking about purchasing a home, the time to start looking is NOW. Hit the ground running knowing that you’re taking advantage of an incredible opportunity when it comes to lending. Thus, if you would like some financing, getting in touch with a professional Mortgage Broker Denver Colorado might do the trick for you!

There is honestly nothing better than having a house that you can call your own – no matter how much time it takes. And Denver’s market seems ripe for it now. After all, waiting in Denver’s market will only mean less home for the money.

Patrick FinneyPatrick Finney is the owner and managing broker of FINN Real Estate in Denver, Colorado. He has been named a Five Star Agent by 5280 Magazine and has over 13 years of industry experience with $240,000,000 of real estate sold. He is an active supporter of many non-profits, including the National Multiple Sclerosis Society and the Leukemia & Lymphoma Society.