why buyers shouldn't worry (so much) about the interest rate

Let’s face it– the U.S. has hit a recession. This is probably not news to you if you have noticed gas prices, grocery prices, and/or watched the news at all. One group of folks who DEFINITELY feel the economic sting right now are homebuyers (especially first-time homebuyers).

With the Fed rising interest rates to try to combat inflation, you may be wondering if now is even a good time to try to purchase a home. Let me tell you WHY you shouldn’t be SO worried about the interest rate.

When you’re budgeting your monthly expenses, you’re probably looking at grocery, power, and gas bills. The one thing you’re probably NOT thinking about is your interest rate, and that’s because it doesn’t really matter. What matters is HOW it affects your monthly payment.

A monthly house payment typically consists of 4 things: Principal, Interest, Taxes, and Insurance (if you escrow those 2 in with your monthly payment). You can remember PITI for short.

So how can you ensure that you have the monthly payment you want and set a home budget? There are a few options to get here. Some may include taking advantage of first time homebuyer programs, paying down your interest rate in points, or making a down payment on the principal of the home to lower your payment. Shopping around on homeowners insurance can benefit your monthly payment as well!

I am NOT a financial advisor, so you will want to work with one of my awesome preferred mortgage lenders to get your payment amount and budget nailed down (and get pre-approved!)

So next time you hear that the interest rate is changing, don’t stress! You have multiple options to get the monthly payment you need in order to become a homeowner. Rest assured that you’ll be investing in the single best hedge of protection against inflation - your OWN home.

If you’re ready to get started, click here to book a consultation with me! We’ll discuss all your options and make a game plan to get you to home ownership.