- 2018 Posts

  1. FHFA Conforming Loan Limits 2019
  2. How 2018 Market Trends Will Affect Wisconsin Buyers
  3. No Money Down Home Loans Appleton Oshkosh Green Bay Wisconsin
  4. Benefits of using FHA for your home loan
  5. Benefits of being a homeowner
  6. Wisconsin local lender vs online lender
  7. Home Loan Pre-Approval
  8. No Money Down Home Loan
  9. Serve and Support Loans
  10. Debt Consolidation and Cash Out

+ 2017 Posts

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+ 2015 Posts

Raising Rates Impact Buyers

April 11, 2017

March weather not only brought in spring weather and homes going on the market for sale, but also brought with it a rate increase with the Federal Reserve. Many first time home buyers are asking "how does this affect me?"

 

When the Federal Reserve raises its rate, it affects local lenders with rate increases. This is then passed down to anyone that is hoping to purchase a home. When interest rates increase, so do mortgage payments.

 

A mortgage payment is composed of payments toward your principle and towards the interest owed to the bank for lending you money. When the interest rate goes up, your payment amount does too. Interest rate increases mean home buyers may find they do not qualifying for as much purchase money and can be made to buy a home of less value to afford that payment.

 

The good news is, if you are looking to purchase a home, now is the time to act and get pre-approved. The rate increase was small this time around, but the Federal Reserve is possibly planning another increase in June and another before the end of the year.

 

Purchasing your home now will lock in your rate while it's still affordable and help you take advantage of rates we may not see again.

 

Contact GSF Mortgage today, we are here to help you accomplish your home dreams!

 

 

Ron Meyer
GSF Mortgage Corporation
300 Patriot Dr.
Little Chute, WI 54140
(920) 788-9608
rmeyer@gogsf.com
NMLS #222688 & 1018