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Buy Now Or Pay More Later – Pensacola Real Estate Mortgage Rates Are Rising

The price of food and gas is not the only thing that is rising. Mortgage rates are rising too. If you are looking to buy a new home, I recommend starting the process sooner than later. A down real estate market and low interest rates create the perfect opportunity for getting great deals on real estate. But waiting around for the “right time to buy” will end up costing you money in the long run. Now is the right time. Read on to find out why.

Here are just a few quotes from various news sources published in the past few days:

Mortgage Rates Rise Again – Fixed rate mortgages have reached their highest rates in over 10 months, according to bankrate.com.

Mortgage Rates At Highest Level In 9 Months 

Mortgage Rates May Go Over 7 Percent This Year  

Brian Brady is an excellent blogger whose blog I read regularly. Here is his most recent Mortgage Rates Report .  

Brian believes that rates will come back down within 3 years, but could rise up to 2% before then. However, I believe that within 3 years the Pensacola real estate market will be well into another upward cycle. This means you will be paying considerably more for a home in 3 years compared to what you would be paying for that home today.

How Much Can Rising Real Estate Mortgage Rates Cost You?  

The table below illustrates the cost of a 30-year mortgage at varying interest rates. The numbers are based on the mortgage being kept for the full term of 30 years.
Pensacola Real Estate Interest Rates 

Assuming the interest rate is 6.5% today, look how much the monthly payment goes up with each 1% rise in interest rates. It is over $100 per month for a $150,000 mortgage and over $130 per month for a $200,000 loan. These figures only include Principle and Interest, not insurance or taxes. If you were to live in the home for 30 years, the “Cost Over Today’s Rate” column shows how much more you will pay over the life of the loan at higher interest rates.

Does buying a home now make sense?  

Absolutely, assuming you can afford the home you want. Every real estate agent knows that we are close to the bottom of the real estate market in Pensacola, and interest rates will rise, at least for the next several years. If you can’t afford the home you want, buy a less expensive home and use that to build equity and move up to a nicer home in the years to come.

Shop Carefully For The Real Bargains 

I am not recommending just buying any home. There are a lot of homes on the market and some of them are super deals. Others are grossly overpriced. This is where a good real estate agent can help. A good agent can help you analyze the value of various homes on the market that you may be interested in purchasing and help you find motivated sellers who are willing to sell at bargain prices.

If you are ready to buy, please feel free to Contact Me for assistance. I can help you make sure that you get the most for your money.

Click on Pensacola Real Estate News for a list of articles indexed by category. 

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    Very well said. Thanks for your regular updates….

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