Decatur, Ill. (WCIA)
Interest rates are rising, the sky is falling. . . or is it? Main Place Real Estate shares more.
You’ve probably heard a lot of buzz about interest rates rising in recent months, and they certainly have. In March (2022), the average 30-year rate was 3.22%. Currently in July, that same product is about 5.75%.
That is a big jump, but homes are still affordable. As an example, a $200,000 loan for a 30 year term at 5.75% interest rate has a loan payment below $1200 per month.
Keep in mind, there have been incredible increases in rental rates at well over $1200 per month, so this is still a very affordable time to buy a home.
We’ve also noticed a lot of adjustable rate mortgage options available. If you have reason to believe you will not live in the home longer than 10 years, you could take an ‘arm’ which offers a lower interest rate for the first 5 to 7 years.
After that time, the interest rate increases. The payment is still based on 30-year amortization, so this is a great way to decrease your monthly payment.
It’s very important to stay in touch with your lender. If you decide to buy a home, lock your interest rate as soon as you go under contract!
Count on Main Place Real Estate to take care of the rest! Call 217-422-3335