One of the hottest real estate topics these days is the going rates for mortgages and interest. As you probably know, the interest rates have slowly started to climb. As of writing this article, the interest rates are hovering around six percent. Many buyers are trying to lock in the rates so they can apply for a mortgage and close in time, before the rates increase any more.
I want to discuss interest rates and how they can affect your borrowing power. Buyers know that interest rates have been on the rise, and are asking mortgage brokers if they should wait for rates to go back down. Rates can easily continue to go up, and Aryeh Brecher from FM Home Loans has prepared a breakdown of how the interest rate rise can affect your monthly payment. Keep in mind that just because interest rates have been going up does not mean that they will not continue rise even more.
Many people ask me if they wait, will they be able to find a better deal in the summer. I give the same answer to the people who ask if winter is a quiet time so should they wait for the spring to put their house on the market. It happens to be, we sell during all seasons. I do not necessarily see an increase in deals closings or more buyers specifically on the market. I do see that some sellers that are moving out of New York do need to close by the end of the school year. So yes, there are some sellers that want to make a deal by the end of the school year so that they can close and move in before the new school year begins in September. Do I find that sellers are ready to give a $300,000 price break because it is summer? No. Do I feel that if the seller is more motivated he will be more flexible come the summer because many people are away, therefore less buyers are looking? Yes, I do agree with that.
Did You Know?
Many times when we do a home inspection or when I tour a home for the first time,
I like to check out different parts of the house. One of the things I look for is an electric panel. I check out how many amps and which company the sellers are using. Some companies are: GE, Siemens, and Federal Pacific Electrical. Investigations indicate that Federal Pacific Electrical (FPE) panels contain defective circuit breakers that create a substantial fire risk. Some estimates indicate that these dangerous electrical panels cause around 2,800 fires and more than one dozen deaths each year. Generally, the cost for a new panel is $1,200-$1,500 to replace. When we do find an FPE, I like to point it out to the seller so that a buyer does not proceed to ask for a $5,000 credit. Sometimes sellers chip in towards a new panel, sometimes they pay for the whole thing, and sometimes they are adamant about not chipping in. It all depends.