We never pressure our clients to buy or sell if they are not ready, its kind of what we are known for. But, if you've been kicking around the idea of selling or buying, here is something to think about. When interest rates rise, how much home can you afford? Let’s say you can afford a $400,000 with a 4% interest rate today.
If rates rose by .5%, you could afford a home for $380,000
If rates rose by 1%, you could afford a home for $360,000
at 1.5% higher rates, you’d only be able to buy a home for $343,000.
If rates rose by 1%, you could afford a home for $360,000
at 1.5% higher rates, you’d only be able to buy a home for $343,000.
You can buy less of a home when interest rates rise. We don't know for sure what rates will do over the next year, but odds are very good they're headed upward. Let us know if you'd like to talk about your plans this year and we'll give you options, ideas and answers.
Happy Investing!
Wendy Ceccherelli
Century 21 Northwest Realty
wendy@c21nwr.com
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