Mortgage rates on the rise, housing prices steady; what home buyers should do

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Delmarva – Mortgage rates are on the rise and we spoke with a local realtor telling us what home buyers should do about it.

Tori Lech tells Coldwell Banker Resort Realty in Milford, Del. With interest rates rising and home prices flat, now is the time to buy. She says some buyers may be waiting for prices to fall, but if they wait while interest rates go up, you’ll pay much more during the life of the loan. “Let’s say prices go down, but interest rates go up, so the house you were looking at that was $400,000 is now $360,000, but now your interest rate is 4%,” Lech says. “So your monthly payment will go up, let’s say an extra $15 a month which doesn’t sound like that much, but when you look at the interest paid over the life of the loan, 30 years, that’s a lot, that’s like Lech adds an extra 30k,” it could cost you That 1% increase in the interest rate is a lot of money.”

We are told that if you buy a home at a higher price but at a lower interest rate, you will get cheaper monthly payments and a much lower wage. That’s why Lech says, “What you see is a lot of sellers taking advantage of that by selling and making a good profit from selling their home and using that profit to buy their next home.”

Lech also tells 47 ABC, “If you are able to pay with cash, this is the best option.

If you want to buy a home now, contacting a loan officer is a good place to start.

Loan Officers:

Northpoint Bank

Jason Thomas (302) 382-6198

Ryan Hogate (302) 632-3192

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