Changing Mortgage Rates Actual Impact

Full Video Transcript Below

Changing Mortgage Rates Actual Impact

[00:00:00] Hey, real estate fans, Alice Lema here broker John L. Scott, and beautiful Southern Orego with another edition of the Weekly podcast. Today we're gonna talk about the actual impact of mortgage rates going up, the increased interest rate. And I think it's gonna be kind of interesting because a lot of us are worried that if we get a mortgage in this market that we're not gonna be able to afford it.

So KCM, keeping current manners actually put out a chart. And I wanna just show you here we've got three different categories of prices. A $250,000 property, a $450,000 property, and an $800,000 property. And you can see the difference between 6% and 7%, which is about where things are landing right now.

We do have people getting high fives. Those are people that are either buying down the rates, have amazing credit. The veteran program has a lower interest rate, but also it's predicted that later in the year we might be [00:01:00] below 6% somewhere in the fives. But for now, let's look at what happens between 6% and 7%.

And you can see in the $250,000 price range we're talking about a difference of maybe a couple hundred dollars. In the $450,000 range we're talking about somewhere between 150 and $300, and these are monthly payment differences. And then $800,000 we're looking at somewhere between $300 a month and maybe $550.

So again, it matters what your credit score is. It matters what your debt to income ratio is. It also matters what kind of property you're buying and if you're gonna live in it. So these are just estimates, but I think it's really surprising to see that having the interest rate change can still make things affordable. But it also depends on the Almighty down payment.

And I know in the lower [00:02:00] price ranges a lot of folks are struggling to get a big enough down payment to make the monthly mortgage more comfortable. So couple of tips about that. See if you can maybe find a property that's a little less expensive, maybe not perfect. Perfect. But something just so you could get in that meets your needs and you're comfortable with the payment.

You can also reach out to friends and family. You can have me call your friends and family and talk to them about how important it is to be a homeowner. This is more for the first time people. You could also sell a property. If you've got a, a home that you're living in and you have a lot of equity, then buying something else, even if it's a little more expensive, I think you'd be surprised at how affordable the payments can be.

But it, it, it does come down to the down payment. I think buying down the credit, I'm sorry, buying down the interest rate and [00:03:00] also. If you can spend a couple of months to improve your credit, sometimes you can get a better rate that way. So that's my tip for this week. It's interesting to see what the actual payment would be in the higher rates.

It's not quite as bad as some of us fear. And when we're going on the apps, this is just another note. The apps are not always accurate. It's always better to check with a real live lender not an automated one, but a real live lender to go over your particular your particular lending needs.

So with that in mind, give me a call, gimme a text. My number's 541-301-7980. It's still a good time to buy. It's still a great time to sell. We still have a shortage and we need listings desperately. So gimme a call, gimme a text, and let me help you with your next real estate step. Okay?

Have a great week, [00:04:00] and hug those you love. Bye now.