When it comes to buying a home in the City of Lakes, those on the house-hunt have much to consider: available properties, location, down payment, and of course, mortgage rates. Each of these will have an impact on your monthly payment and with fluctuating interest rates, many Wisconsin homebuyers have been on the fence about when to jump into the real estate market.
But good news, Chetek WI buyers! According to Realtor.com’s Chief Economist, as well as the Federal Reserve, the lower rates we’re currently seeing are likely to stay around for a while longer.
Analysts widely predicted a rate hike last month, which did not occur, and the Fed has now agreed to revisit the topic of increasing rates in December— where a hike could be likely. So, are the low rates enough to prompt you to buy a home in Chetek yet this fall? Take a look at how your monthly mortgage payment is affected with every percentage raise.
With the average for a 30-year fixed-rate mortgage this week at 3.79 percent (October average is the lowest in five months) and the purchase of a $200,000 home with 20 percent down, your mortgage payment would amount to the following:
- $200,000 purchase, 20 percent down, not including taxes and insurance – 3.79 percent rate:
Principal and Interest: $745
Now watch how the projected one percentage point uptick one year from now will affect your monthly payment:
- $200,000 purchase, 20 percent down, not including taxes and insurance – 4.79 percent rate:
Principal and Interest: $839
Mortgage rates today are considered historically low and are well below the average of the past four decades. Homebuyers still on the fence about buying a home in the Chetek area would be wise to consider where rates are going and the cost of waiting as much as current levels.
“The rule for when is it time to buy is always the same: given your household budget and where current interest rates are, if it makes good financial sense to take out a home loan today, then today is the day to do it,” said Fannie Mae’s Chief Economist.
As your real estate experts in the City of Lakes, we can help you find the right home that fits your budget and take advantage of these low interest rates. Give us a call today!
Six Lakes Realty
Office: (715) 924-4806