If you’re thinking about buying a home in Rumson or Fair Haven in 2014, you need to be aware of mortgage interest rates. Here’s what some key sources are predicting the average 30 year mortgage interest rate will be in the 4th quarter of 2014:
Source Predicted Rate
Fannie Mae 5.3%
National Ass’n of Realtors 5.5%
Freddie Mac 5.2%
Mortgage Bankers Ass’n 5.1%
Why is this important to you? If you’re a Buyer who will need a mortgage, you probably have a budget for a monthly mortgage payment you can afford. At today’s rate (4.15%), the monthly payment on a $250,000 mortgage would be $1,215.26, but next year if the rate increases to 5.3%, that payment would be $1,388.26 (an increase of $173.00 per month).
If you want to avoid further mortgage rate increases, you might want to consider buying earlier in the year rather than later. If you haven’t already done so, go to 2 or 3 lending institutions NOW and get pre-approved (NOT “pre-qualified”) for the amount of money you intend to borrow. There shouldn’t be a cost for you to do this, and you’ll have no obligation to use any particular mortgage broker.
Traditionally we see an upswing in listings in January, and then a lot more new listings in February and March. Use Trulia and other online sources to find homes that might be worth visiting. As a professional REALTOR® I’m a local expert for Rumson. If you tell me what you’re looking for I’d be glad to alert you as soon as anything is listed that meets your criteria. Text, email or call me.
Lastly, here’s my recommendation: if you find a house online that you really like, DON’T CALL THE LISTING AGENT (even if it’s me). The Listing Agent works for the seller, and has a fiduciary responsibility to negotiate the highest price for the house. You want to work with a Buyer’s Agent who works only for you, and who has a fiduciary responsibility to negotiate the lowest price. I’d be glad to email you (no obligation, of course) a copy of the NJ Consumer Information Statement, which describes the 4 kind of relationships you can have with a REALTOR® in New Jersey.
(732) 239-0739 (cell) (732) 530-6686 (office)