I wanted to take a quick second to talk about two things: 1. interest rates and 2. home equity.
Since 1971 the average 30-year fixed rate for a mortgage is right at about 7.38%. Today we're looking at about 7%. My advice to you is: before you allow the interest rate to sway you from purchasing real estate, think about a couple of things.
If you're renting a property right now your interest rate is 100%! If you have credit cards and you're not paying them off every month your interest rate's likely 10% to 15%. If you're really worried about interest rates, I would recommend getting out of your rental and buying some real estate with a lower interest rate and paying your cards off every month if you do have those.
The second thing is equity! The sooner you purchase real estate, the sooner you start building equity in the real estate that you're financing. If you think about the average American, there's a study by the Census Bureau that states the average American, their wealth, almost 40% of their ENTIRE wealth is from Equity that they have in real estate!
So if you don't own any real estate, it's always a great time to get into it, even if the rate is 7%.
I hope that helps I hope you guys have a great day. Take care!
Terry Roberts, USMC Veteran Sr. Mortgage Broker NMLS 397987
E Mortgage Capital
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