I’ ve never blogged before and may find out I don’t have anything interesting to say!  But, I try to keep up on what is happening in Lake City, Florida – both real estate and community-wise.  If you have any questions or topics you want me to write about, contact me and I’ll do my best.

Mar 16, 2017

Oh no! Interest rates are finally rising!

Posted by: Susan Sloan

Right now, one of the biggest questions I’m hearing is how will the increase in interest rates affect me.  Luckily, home prices in this area are still very reasonable with the average home price being $120,000.00.  As someone who bought my first home with a 14% interest rate, the current 4.39 +/- rate still seems like a deal.  For example, if you are buying a $200,000 home with 100% financing (VA financing or USDA), then the difference between between last year’s rate of 3.44 and the current rate of 4.39 would be approximately $109.00/month.  Not terrible, but not great either.  You certainly don’t want to wait until they go higher and be priced out of the market.  And for those contemplating selling, this affects you too!  Not only will your buyer pool be reduced as rates go higher, but you will also have to deal with the higher rates when you sell (unless you are one of the lucky ones who can cash out, downsize and pay cash!!!!)  If you are thinking about buying or selling, contact me through this website and I’ll be in touch as quickly as possible.