The 30 Year Fixed Rate Mortgage Over Time...And How It Impacts The Purchase OR Sale Of Your Home

Interest rates in 2013 were at a historic low at 3.98% (see infograph for a history of rates). Predictions in the housing market indicate that rates are expected to rise in 2014.

As a buyer, increasing mortgage rates have the obvious result of an increase in mortgage payments. However, buyers often don't realize that an increase in the interest rate will also affect their debt to income ratio, reducing the loan amount they qualify for or in some cases, make them ineligible for the loan altogether. Increasing interest rates impacts sellers as well because fewer buyers are able to qualify for a mortgage or the amount they qualify for may decrease which results in a smaller buyer population.

If you're thinking of buying OR selling, NOW is the time! The inventory is low so competition amongst sellers is reduced while low mortgage rates are enticing buyers.

Maribeth Tzavras is a residential Broker with REMAX Professionals Select specializing in Plainfield and the western suburbs. As a Plainfield resident, her knowledge of real estate in the Plainfield market is extensive. Are you thinking of buying or selling? Contact Maribeth Tzavras at 630-624-2014 or mtzavras@comcast.net for a free market analysis or a customized search for your buying and selling needs.