Beach Haven West Real Estate Mortgage Rates and Buying Power

Beach Haven West Real Estate Mortgage Rates and Buying Power

Mortgage Rates and Buying Power in the Beach Haven West NJ Real Estate Market

Beach Haven West Real Estate Mortgage Rates and Buying Power
Beach Haven West Real Estate Mortgage Rates and Buying Power

Beach Haven West Real Estate

The Beach Haven West NJ real estate market has been doing very well since Hurricane Sandy. Fueled by a massive wave of new construction home prices and market activity have improved. While there are still many buying opportunities in the Beach Haven West market it is critical that all buyers understand how Beach Haven West real estate mortgage rates and buying power are related.

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Beach Haven West Real Estate Mortgage Rates and Buying Power

The days of exceptionally low interest rates are likely behind us. Mortgage interest rates have gone up, and industry experts agree that they’ll continue to rise. The U.S. Federal Reserve anticipates several rate hikes by the end of the 2017.
Higher rates can affect your ability to buy a home. If you are considering buying, we recommend you do so now while rates are still affordable.

Higher Rates = Less Buying Power

As rates go up, the amount of home you can afford goes down. For every 1.00% increase in interest rates, your buying power decreases by about 10.00%.

For example, let’s say you can afford $1,194 on your monthly principal and interest payment. With a 30-year fixed loan, a 20.00% down payment, and an interest rate of 4.00% (assumed annual percentage rate [APR] of 4.053%*), you could borrow $250,000 to purchase a home around $312,500.

But if rates go up to 5.00% (APR 5.056%*), the amount of home you can afford decreases to $278,025, causing you to lose $34,475 of buying power. That’s a lot of buying power!

Think of what that buying power could translate to — a better neighborhood or school district, a starter home that requires little to no renovation, a larger space for your growing family? An increase in rates could cause you to lose out on those opportunities.

Higher Rates = More Money Spent On Interest

A higher interest rate also means you’re likely to spend more money on interest, causing you to pay more for your home in the long run.

Bottom Line? Don’t delay! Buy a home now while rates are still affordable.

Buying a Home in the Beach Haven West Real Estate Market

We are a three agent team that can assist you with buying a house in the Beach Haven Wet real estate market or anywhere in the Southern Ocean County real estate market. We have a great team of affiliates assembled including our partner lender Neil J. Robinson NMLS# 216322 Glendenning Mortgage Corporation 81 East Water Street 3rd Floor Toms River, NJ 08753 (609) 384-2140. Let us know how we can be of service!

By : Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.beachhavenwestrealestate.com | www.BuyLBI.com

Click here to search all homes for sale in Beach Haven West

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Glendenning Mortgage Corporation and its loan officers are not financial advisors. You should consult a financial advisor to devise a financial strategy that works best for your situation. *For example only. Program rates, terms and conditions are subject to change at any time and may vary based on borrower’s credit history.