Highlands NC Real Estate, Rising Rates Have Buyers Looking at Options
Rising mortgage rates have buyers looking at options when it comes to Highlands NC real estate. Borrowing money is more expensive than it has been in years and, as a result, buyers are taking a pause. Paying cash for a home is ideal when rates are high, however, many buyers do not have piles of cash laying around. Getting solid financial advice can be helpful in times like these. An experienced Highlands NC REALTOR can offer recommendations for reputable local lenders who can offer solid advice.
Impact of higher rates
The impact of higher interest rates is that buyers will be paying a lot more for a Highlands NC property. Rates of 7% and higher mean that people are paying far more over the lifetime of a loan than they would have been a few years ago. This equates to tens of thousands of dollars. Additionally, most loans are set up to pay more interest on the front end. As a result, there are many buyers considering delaying, or considering delaying, a real estate purchase.
Adjustable rate loans
An adjustable rate loan is a great option for anyone looking to buy Highlands NC real estate. An adjustable-rate loan typically starts with a low rate and a term. A 5-year adjustable rate loan, for example, will start with a low rate which in turn will ratchet up after 5 years. The good news is that a low-rate loan is achieved for the first 5 years. The reality is that most people look at an adjustable-rate loan as a short-term fix for high rates, looking to refinance in 5 years. However, if rates are still high in 5 years the refinance may not hold much appeal. It is important to base decisions on data and facts as there is no crystal ball to reveal where rates will be in the future.
Learn more about Highlands NC real estate
Contact me, Lynn Kimball, today to learn more about buying and selling homes in Highlands NC. I welcome the opportunity to update you on the market while answering all of your questions. Additionally, I will happily recommend reputable local lenders for you to meet with. Let my knowledge and experience serve as your guide to Highlands NC real estate.
Click here to read “Buyers Embrace Adjustable Mortgages as Rates Surpass 7%” from REALTOR Magazine.