Want More House for Your Dollar? Track Dips in Interest Rates
Sounds straightforward, right? The lower the current interest rates, the better deal you can get on a mortgage for a new custom Florida home.
Lower interest rates mean less interest over the life of a loan and — perhaps more importantly — lower monthly payments. Even those of us who aren’t math whizzes probably understand that.
There are several ways this works for a prospective ICI Homes buyer. You can buy a bigger house if that better fits you and your household. You also can consider a pricier one that you eschewed due to conscientious budgeting. Or, you’re happy with your original price and square-footage requirements, but gladly will pay less per month for them.
Thank you, Federal Reserve Board!
How do you pounce on such an opportunity? By tracking dips in interest rates.
Keep tabs on financial news
This doesn’t mean staying glued to cable channels or websites. Or taking an economics class.
It simply means setting alerts on your digital device(s) of choice for “interest rates” (or your own key words). Scan headlines. Talk to friends or family in the financial businesses who would know these things as part of their work flow.
Depending on your prerequisites — targeted purchase amount, loan duration and monthly payment parameters — even a tiny dip might make a big difference. A mortgage payment that’s $25 less is as big a deal to many people as one that suddenly lowers by $200.
All the more reason you should…
Stay in contact with your sales professional
These folks know what’s happening in the market and can alert you to opportunities.
Say you want ICI Homes to build your new custom Florida home, but you’re judiciously cautious of current interest rates, or, rates that might’ve escalated while you worked through the mortgage approval or floor-plan selection processes.
“Ugh,” you tell your sales professional. “Put me on hold.”
Here’s the important part (imagine a trumpet blast): share your comfort zones — if you haven’t already — with your pro. Tell him or her your financial ceilings for mortgage payments, overall home prices and square footage. Then ask to be alerted when interest rates dip.
In the meantime, …
Prepare to act on opportunity
Stay loose, like an athlete!
It’s not a complete bummer if you can’t or don’t want to push GO with current interest rates.
Instead, be proactive. Keep checking off items on your home-buying list: first, assess yours and/or your family’s financial health. Work on improving your credit scores, saving for a down payment if you’re a first-time buyer, and getting approved for a mortgage.
When the Fed lowers the current rate, you’ll be positioned to act. You’ll see the news alert, be notified by your sales professional that your window has re-opened, and he or she quickly can put you back on the fast track to building or buying.
