With mortgage interest rates hovering near all-time lows, a lot of people are deciding to make a move. Today I want to discuss how these low interest rates impact home sellers.
1. More Home Buyers Are Coming Into the Market to Take Advantage
33% more mortgage applications were made last week than the same time last year. A study from Lending Tree found that 67% of the people who planned to buy a home within the next year were going to do so in order to take advantage of the rates. If you own a home and plan to sell, know that your property is a hot commodity.
2. It’s A Good Time to Get A 30-Year Mortgage Instead of A 15-Year
Instead of getting a 15-year mortgage and stressing about paying that down quickly, you can get a 30-year mortgage and take the extra money that you’d otherwise put toward your 15-year and buy an investment property.
3. You Can Make A Smaller Down Payment On Your Next Home
Instead of taking all your equity from your current home to apply to the down payment of your next home, you can instead make a smaller down payment on your next home, which would free up capital for you to do the home improvements that you’ve always dreamed of doing. This gives you more options to choose from, since you won’t only be looking for move-in ready homes.
As you can see, our low interest rates aren’t just helping buyers right now; they’re helping sellers just as much. This window of opportunity will not be open forever, though.
If you’ve been thinking of buying or selling a home, now is the time to get started. Reach out to us with any questions you have and we’d be glad to help you achieve success.