Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase.
This morning I sat down with Barb Adelaine from BankStar. Today she talked about how the interest rate increases may or may not effect you. You can reach Barb at 605.696.8562 or email@example.com. Her office is located at 1301 6th St., Brookings SD 57006 or on the web at www.ebankstar.com
- Oh, technical difficulty, we're live, that's what happens when this, when we hit the live button, so sorry about the drop off there. But, we'll kinda have to bend down here a little bit. Let's see. How's that? So, hey Shane Andersen here with the Brookings Home Team. Powered by Century 21, and I've got Barb here from Bankstar, it is 8:15 and it is the Monday morning mortgage tip, so with that being said, we'll just get right into it and, Barb, what do you have for us today?
- I think everybody's startin' to get nervous about interest rates. You're hearing on the news they're going up, you hear words like the market is tightening and things that sounds scary like that, so for me I think the best thing to know is what the real numbers are and how it does effect you so I just did a little math for ya. If you were borrowing $100,000 for 30 years, and the rate went up a quarter of a percent, that changes your payment $15 a month. So that doesn't sound near as scary as oh my gosh, the rate went up a quarter of a percent. If you pre-approved and started looking for a house late last year you might have been pre-approved at 4% for a 30 year loan, those have gone up and we're probably 'bout four and a half for most borrowers now, so that means you should add $30 to the monthly payment or maybe you should make a loop back 'round and visit with the loan officer that you pre-approved with to make sure that you're okay. With all of my customers, we're doin' a what if, so four and a half is about where most people are now, if we start there, what if it goes up a quarter and it's four seven five, and what if it goes up another quarter and you're at five before we get closed or before you can lock your rate in. So those numbers, if you think about each quarter being $15 a month, that means if it went up a half, that's $30 a month. For most people that's pretty absorbable. That was on a $100,000 loan though, so if you are gonna borrow $400,000, that's like a big leap, then it's $60 a month for each quarter of a percent so those numbers will keep growing. About $15 a month for 100, then 30 a month for 200 and that will kind of give you a ballparkish number so that you know what's really happening in your pre-approval when you hear that rates went up. Don't get too scared, but if you get a chance to move you don't wanna drag your feet either because not only do houses go quickly on the market, but rates are goin' up too. So you'll just wanna keep movin' right along once you're ready.
- Perfect. Yeah and we've been sayin' this for many, many years, that they gotta come up at some point and now they are, but still, you know, you look at our parents, even ourselves, 10, 15 years ago, sometimes we were were touchin' the double digits there so, my parents were in the 20's.
- Oh my gosh.
- The late teens or something like that. So yeah, they're still great though guys, 5%, four and half percent, but it does affect your house payment there a little bit so, that's great information, if you have any other questions for Barb feel free to reach out to her. I'll have all her information here on the top, on the bottom, on the sides, where ever your device allows you to see that. If you do have something that you need to ask Barb about, please reach out to her. If you have any questions for us, about any, if you have a mortgage tip for any of us, please comment below and let us know, we'd be happy to answer that on the next episode so, this is number 30, number 30 episode so congratulations, you hit the three zero mark here today, hopefully we can continue to keep doin' this, thanks everybody for watchin'. 'Til next Monday guys, have a great week and we'll talk to you later. See ya.
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