Creekview at River Run Sellers & Buyers. The Federal Reserve Board is to meet in September. It’s rumored at that meeting the interest rate that the Fed charges banks to borrow money will go up. The rise in the interest rate will cost banks more money to borrow which in turn means that it will cost you more to borrow. How or why does this affect you? Here is why this rumored rate increase will affect Creekview at River Run Sellers & Buyers.

Here’s a real life example. An average home sale price in Creekview at River Run is around $330,000. Currently, at a 4% interest rate the principal and interest payment with a 30 year mortgage is about $1,575 per month.

Now….Creekview at River Run Buyer’s if the interest rate goes up .25% to 4.25% and your maximum affordable principal and interest payment is $1,575 your new loan max is now $320,000 to keep your payment at $1575.00 which is a decrease of $10,000 in buying power which would make it difficult to purchase your home in Creekview at River Run where the average home price is right around $330,000.

If the Fed were to raise the interest rate .50% to make the rate 4.5% you would have even less buying power. Using the same example from above of keeping a $1,575 payment with an interest rate of 4.5% your maximum loan amount would be about $310,000 which is $20,000 less. Act today to save your purchasing power.

Creekview at River Run Sellers if the interest rate goes up you will have less people that can afford to purchase your home. If you have any thought of selling your home you should act now before the interest rates go up while buyers have increased buying power.

As your local real estate professional, I am available to answer any questions you have. I hope this was informative. You can call me at any time for advice and if there is ever any way I can be of service to you or anyone you know, please contact me. There’s no obligation, and I’d love to help you!