What Tampa Bay Homeowners Should Do Before Interest Rates Rise

Dated: July 19 2021

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What Tampa Bay Homeowners Should Do Before Interest Rates Rise

What You Should Do Before Interest Rates Rise | MyKCM


In today’s Tampa Bay real estate market, mortgage interest rates are near record lows. If you’ve been in your current home for several years and haven’t refinanced yet, there’s a good chance you have a mortgage with an interest rate higher than today’s average. Here are some options you should consider if you want to take advantage of today’s current mortgage rates before they rise.

Sell Your Home and Move Up (or Downsize)

Many of today’s homeowners in the Tampa Bay Area are rethinking what they need in a home and redefining what their dream home looks like for their lifestyle. For some, continued remote work is bringing about the need for additional space, home offices, workout areas and more. For other homeowners, moving to a lower cost-of-living area or downsizing to a condo or townhouse with less maintenance may be great options. If you’re considering doing either of these, there may not be a better time to move...Here’s why:


The chart below shows average mortgage rates by decade compared to 2021What You Should Do Before Interest Rates Rise | MyKCMToday’s mortgage rates are below 3%, but experts forecast rates to rise over the next few years.


If the interest rate on your current mortgage is higher than today’s average, take advantage of this opportunity by making a move and securing a lower rate. Lower rates mean you may be able to get more house for your money and still have a lower monthly mortgage payment than you might expect.


Waiting, however, might mean you miss out on this historic opportunity. Below is a chart showing how your monthly payment will change if you buy a home as mortgage rates increase:What You Should Do Before Interest Rates Rise | MyKCM

Breaking It All Down:

Using the chart above, let’s look at the breakdown of a $300,000 mortgage:


  • When mortgage rates rise, so does the monthly payment you can secure.

  • Even the smallest increase in rates can make a difference in your monthly mortgage payment.

  • As interest rates rise, you’ll need to look at a lower-priced home to try and keep the same target monthly payment, meaning you may end up with less home for your money.


No matter what, whether you’re looking to make a move up or downsize to a home that better suits your needs, now is the time. Even a small change in interest rates can have a big impact on your purchasing power.

Refinance


If making a move right now still doesn’t feel right for you, consider refinancing with a trusted lender. With the current low mortgage rates, refinancing your home is a great option if you’re looking to lower your monthly payments and stay in your current home.

Bottom Line


Take advantage of today’s low mortgage rates before they begin to rise. Whether you’re thinking about moving up, downsizing, or refinancing, let’s connect today to discuss which option is best for you.


Want to know what your home might be worth in today's market? CLICK HERE

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Andrea Hartmann

Andrea is the Managing Partner of The Sandy Hartmann Group and runs the team alongside Sandy Hartmann. She would love to talk to you about real estate! Andrea was born and raised in the Tampa Bay a....

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