How a Change in Mortgage Rates Can Impact a Frisco Home Purchase

How a Change in Mortgage Rates Can Impact a Frisco Home PurchaseMany homebuyers in Frisco and across the country have been watching interest rates since they significantly shot up in the last couple of years. Some buyers are holding off for what they feel is a better mortgage interest rate. Some buyers are now beginning to wonder if a mortgage interest rate will impact the price of a home purchase enough to keep them from buying a home.

How a mortgage interest rate can impact a Frisco home purchase

Let's use an easy round number as an example to help illustrate how a mortgage interest rate can impact the overall cost/price of a home. For example, we will pretend like we are purchasing a home that costs $450,000 in Frisco Texas. 

If you were to purchase a $450,000 home and secure a mortgage interest rate of 6% the monthly payment on that home will be $2,697.98 per month. That same $450,000 home with a 6.5% mortgage interest rate would go up to a payment of $2844.31 per month. That same home purchase with a 7% mortgage interest rate would increase to $2993.86 a month.

As you can see a change of just a half percent can greatly impact a monthly mortgage payment. A change of 1% can impact your monthly payment by almost $300. This is why it is incredibly important to shop around for mortgage options and to try and lock in the lowest rate possible and not wait around to see what mortgage rates will do if you have found a home that you love and can afford right now.

Finding the best mortgage interest rate

The best strategy for purchasing a Frisco home with a mortgage is to get preapproval on a mortgage loan. When you are applying for mortgages it is best to get more than one quote for a possible mortgage. It has been found that home buyers who seek more than one mortgage option end up saving thousands of dollars over the life of their loan. You could be quoted several different interest rates from different banks and we offer different types of loan repayment programs. Making sure that you look at your options can help you discover the best step in home affordability for you. You may find that foregoing a lower payment for a lesser loan term is the best for you to help you save money on interest payments over the life of the loan.

It is a good idea to talk over your options with a financial advisor and to ask as many questions as possible before committing yourself to a major purchase that will last several years. If you are unsure where to start finding reputable mortgage lenders locally you can ask for advice from your trusted real estate agent. They can give you a few names of people former clients have worked with. You want to make sure that you never feel pressure to work with these specific individuals but they are just a launching point to help you get started searching for a loan that fits you best.

If you are considering a home purchase in Frisco I am here to help. Contact me anytime with any Frisco real estate needs. I am here to help you enjoy the adventure of looking for your next first go home and find one that is within a comfortable price point for you.

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