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We all know that interest rates have gone up recently, but how will this change actually affect you? Today I have Don Jarecki of First Federal of Lakewood. He is my mortgage expert, and he'll be helping to explain what you can expect from these recent changes.
Don says that in the short term, it won't have too big of an effect on average home buyers and home sellers. However, by the end of the year, we can expect at least another increase of 0.25% to 0.5%. This is not as drastic as people might think, but it does add up over a 30-year loan. This is why we urge you to lock in a low rate now if you've been waiting to buy. If you've already been qualified for a $200,000 home loan, this small increase in interest rates will impact your affordability.
For home sellers in the area, if you've been wanting to refinance, then now is the time to do so. Interest rates will only continue to increase, so if you're planning on staying in your home for a while (3-5 more years), then we would recommend refinancing.
Please don't hesitate to come to us with any of your questions or concerns. We look forward to helping you!
