What a 1% Interest Rate Raise Means to Tooele UT Homebuyers

Ever wonder what a 1% interest raise rate means to Tooele UT homebuyers? Probably not, unless you are thinking of buying a home out here. (or maybe sell your existing house).

So, in case you are one of those, I want to pass on some info I received this morning about what happens, and what’s likely’

This article, “waiting will cost more” sent to me by Lauren Patterson on his blog THE HOME FRONT explains what happens to the monthly payment when mortgage rates go up 1% on a $270,000 house.

Further, it examines what the market has done so far this year compared to what the experts had predicted. The future of low rates does not look good.

Finally Lauren has linked to a nice tool to help “calculate the cost of waiting”.

Just to show the type of Tooele listing that falls into this category here is a list of Tooele County homes for sale from $250 to $275,000. All of these properties are currently listed on the Wasatch Front Regional MLS. If the 5% raise in fixed rate mortgages predicted in this article and by many real estate professionals were to take place, this same list would be found looking for houses in Tooele County from between $262,500 and $288,750.

Enjoy!

About Higher Mortgage Rates

With the first quarter of 2018 in the books, the 30-year fixed rate mortgage is nearing what Freddie Mac predicted it would be in the second quarter. If this pace continues, rates will exceed the five percent mark expected by the end of the year.

The Fed has had its first of an expected three raises for this year and two more are expected in 2019. While these rates are not directly related to mortgages, they certainly have an effect.

Delaying the decision to purchase or refinance could be an expensive missed opportunity. A $270,000 mortgage at 4.44% has a principal and interest payment of $1,358.44 per month. If the rate were to rise one-percent in the next twelve months, the payment would be $1,522.88.

The $164.44 increase would cost a homeowner an additional $13,812.97 in seven years and close to $60,000 over the full term of the loan.

The question facing people is “what would you spend $164.44 each month if you had acted sooner to get the lower rate?”

If you’re curious to know what your “missed opportunity” could be costing you, try this Cost of Waiting to Buy calculator . Use 0% increase on price change if you are refinancing a home you already own.

I hope that this article gives you a sense of urgency and you can see what a 1% interest rate raise means to Tooele UT homebuyers.

Help With Rising Rates In Tooele County Utah

Now,,,,,,,,,,,, this is the part of my post where I tell you, “don’t miss this opportunity”.Give me a call. And I will in a minute.

First, let me suggest that you need a local full time agent before moving forward too much. And…. That I would like to be that agent. But don’t take my word that I will be the best REALTOR you could hire. Read my bio. It’s called about Berna Sloan. (clever I know). Then, if you like what you see, check out my blog about Tooele County. I have written 100s of articles about real estate in this area and if you take the time you can see that I’m involved in this business and I know what I’m talking about.

As the kids would say “this aint my first rodeo”.

So, now, “don’t miss this opportunity”. Call me, Berna Sloan 435-840-5029

Let’s talk about what a 1% interest rate raise means to Tooele UT homebuyers.