Pre Lock your interest rate (How to Avoid Rising Interest Rates and Stand Out in a Competitive Market)
In case you haven’t heard, mortgage rates are on the rise. In fact, in May of this year they reached their highest point in the last 7 years. While the rapid rate hike has appeared to cool off for the time being, the common belief among experts is that they will continue to rise.
However, this uptick in rates has not slowed the down the real estate market whatsoever and home values continue to rise. Homes across the US have been selling within days of hitting the market and majority of the time these are multiple offer situations. While this is great news for sellers, what does this mean for you as the buyer?
As a buyer, this should not deter you from purchasing you a home. If anything, you should be excited. Although interest rates have risen, historically speaking rates are still near their all time low. The rise that we have seen in property values over the past year still make real estate one of the most sound investments you can make. As a buyer, the rise in interest rates should not be ignored and you should do everything in your power to protect your rate while they remain near the historical low. While these is all great for people who are ready to buy now, what about those who are looking 3 months, 6 months, or even a year down the road?
On behalf of The Federal Savings Bank I am happy to announce the release of our Long-Term Interest Rate Lock Program. With this program, buyers for the first time now can secure their interest rate for up to a whole year before you have even identified a property. It is unclear how long this upward trend in rates will continue. Therefore, as a buyer you should do everything in your power to protect yourself and lock in at a low rate before they jump up again. Not only will this program allow buyers to lock in for an extended period. It will also allow a free rate float down if rates drop by the time of your purchase. So why wait? If you are even thinking about buying a home give me a call to get your rate locked in today and protect yourself from further market uncertainty.
Daniel Pinkerton, Vice President
The Federal Savings Bank, 300 N. Elizabeth Street, STE 3E Chicago, IL 60607