- 2019 Posts

  1. Is It Time to Refinance? Here Are The Steps You Need to Take
  2. Saving For Your First Home? Here’s Everything You Need to Know
  3. Options, Options, Options
  4. A Personalized Approach
  5. Credit Confusion
  6. Building Your Dream Home
  7. Tax Time in Wisconsin
  8. Don’t Let Intimidation Get in the Way of Home Ownership
  9. Setting Financial Goals for the New Year
  10. Buying a home after bankruptcy

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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
NMLS #222688 & 1018