iCrowd Newswire
01 Jul 2022, 17:48 GMT+10
New York. NY - If you're considering buying a home or refinancing your mortgage, don't wait. Mortgage rates just hit the highest level since before the pandemic began and more increases could be coming, putting pressure on homeowners and buyers to pull the trigger on purchasing or refinancing.
According to some sources, the annual percentage rate (APR) on a 30-year fixed mortgage rose to 4.000% this week, an increase from 3.175% in January 2022. It's the highest it's been since the first week of January 2020.
Inflation in January also hit a new 40-year high, which will contribute to continuous increase of mortgage rates over the next several weeks, even through 2023 and beyond.
With home prices increasing as well - 15% or more than what they were one year ago - first-time homebuyers are feeling the pressure of increasing costs, and new and existing homeowners will also feel the burden of rising mortgage rates.
With the lowest rates in decades, many homeowners spent the last two years putting more of their budget toward investing, increasing returns at a higher rate. Advantages to this included faster growth, earned compound interest, greater employer matching, and flexibility with the funds. However, investments carry risk, and decrease the speed you're building equity in your home.
With rates now increasing, homeowners and buyers no longer have the flexibility in their budget to invest over paying down mortgages. It's important to ask yourself questions like:
If you're looking for an additional opportunity, many homeowners are opting for cash-out refinance options, trying to take cash out of their homes with value increasing.
If you have extra funds, consider the following pros and cons of paying off your mortgage when deciding whether to pay it off or do something else, like invest:
On the other hand,
See Campaign: https://www.credello.com
Name: Carolina DarbellesEmail: [email protected]Job Title: PR Specialist
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