Consider Resetting Your Mindset Over Today’s “High” Rates

Jeff Lang April 13, 2023

High interest rates don’t have to keep you from the home of your dreams.
Are you stuck in a home that doesn’t quite fit your needs because you’re worried about high-interest rates? It’s time to shift your mindset and think about the potential benefits of downsizing.
While interest rates have historically been over 7%, let’s take a conservative approach and assume a 6% interest rate. Instead of worrying about the increase in interest rates when purchasing a new home, consider the potential savings over time.
“Don’t let high interest rates hold you back from finding your dream home.”
Over the last ten years, interest rates averaged around 4%. For example, if you purchased a $1 million home with 20% down, the difference between a 4% and 6% interest rate would be around $1,000 a month. That’s $12,000 a year or $120,000 over the last ten-year period that you’ve saved. That extra cash can be applied to a larger down payment or used to pay off higher interest rates now. Plus, you can always refinance when rates inevitably go back down.
By taking advantage of the potential savings, you can comfortably move into the ideal home that suits your current needs. Don’t let high-interest rates hold you back from finding your dream home.
Remember, if you have any questions about this topic or real estate in general, please don’t hesitate to reach out to me by phone or email. I would be happy to help you with all of your real estate needs.

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