Since this is a buyerâ€™s market, itâ€™s not a great time to be selling your home, but if you own a lot, and you are planning to have your home built in the near future, this is a good time to start the process of selecting a builder and planning your home.
Most people plan to finance the construction and long term mortgage of their home, and this is why it is a good time to get started. Interest rates are at historical lows, and most experts are saying that interest rates are headed upward in the months ahead.
At an interest rate just 1.0% above the current rate of 6.52% on a 30 year fixed, your mortgage payment on a $300,000 loan would increase by $200 per month. You would pay $72,000 more in total interest on your loan than you would at todayâ€™s interest rate. At an interest rate 2.0% above the current rate, your mortgage payment on a $300,000 loan would increase by $400 per month, and you would pay $168,000 more in total interest on your loan than you would at todayâ€™s interest rate.
It’s a good to build your home. It’s a good time to get a loan to build your home. Procrastinate, you and it may cost you in the long term.
Possibly Related Posts:
- Home Defects Haunt Buyers
- Should I Buy a Brand New Home or a Used Home?
- Compare Buying an Existing Home to Building a Home
- Clallam County Septic Regulations
- Is Theft Insurance Necessary When Building a Home?