One of Polyana da Costa of Bankrate’s “Most Important Tips for Mortgage Borrowers in 2014” was to “Lock your rate as soon as you can.” According to da Costa, “Rates will likely climb in 2014 as the Federal Reserve is expected to reduce the pace of the economic stimulus program that has long helped keep rates low. If you are planning to get a mortgage, lock in a rate as soon as you are comfortable with the numbers.” This is on trend with a prediction from Lawrence Yun, chief economist for the National Association of Realtors, last June, as cited in Forbes. He anticipated the rate to climb up to 5% by the end of 2014.

With mortgage rates on the rise, what exactly does this mean for a homebuyer? At the time of this writing, Bankrate states the daily overnight average for a 30 year fixed mortgage at 4.33 percent. Should rates rise a half a percent, a borrower will owe around an extra $30 per month for every $100,000 of debt accrued. So if you are looking to buy a home that is between $250,000 and $550,000, you are looking at a potential difference of around $60-$120 each month on your mortgage payment, depending on how much money you plan to put down. Thus buying now and locking in makes great sense in terms of affordability and a monthly budget.

At WaterGrass, we have several homes available for immediate delivery. If you are interested in taking advantage of low rates before they climb, take a look at these homes today!

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