Why The Spring Maybe the end of low Home Interest Rates!
Get More Woodbury Home For Your Money!
Why Should You Refinance Your Student Loan in 2019
This perfect interest rate market can’t go on forever. As much as everyone would like it to, history has shown us that there will be a correction in the stock market and that comes with interest rates being raised. When we started in Real Estate in Woodbury MN back in 2007 interest rates were in the 6% range and moved up to 7 closer to 2010. If you’re paying rent in Woodbury MN, you should come chat with us at our office about what kind of home you could afford with how much you’re paying in rent currently. We have several of Woodbury MN Home Loan partners that we can have sit down with you and tell you all about getting a mortgage for a home.
It can be scary at first getting your first home mortgage loan in Woodbury MN, but once someone tells you how the numbers work, it is the same as paying rent. You own this amount every month just like rent. It is our job as Realtors and the Home Loan Specialist out of Woodbury to help you find the right home that fits in your total monthly payment amount that they have approved for. Buying a home in Woodbury is not like buying a car. People go looking at cars assuming they can afford this kind of car for this amount then get approved for the car loan. When it comes to buying a home in Woodbury MN you will first get pre-approved by a loan specialist that says you can afford this much home and that includes taxes and insurance. Then you go looking at homes.
As for the down payment on a home, there are so many options. There is down payment assistance in Woodbury. The City of Woodbury will give you a loan for your down payment. You don’t have to pay on the loan, you just have to stay in the home for a certain number of years. Also if you’re a Veteran you can get a VA loan which is 0% down. You can use a VA home loan more than once as long as you don’t have one on a house now.
You can also get a gift from a relative for your down payment. What you must understand is that every month you pay rent you have a place to live but that is it. When paying a mortgage, every month that mortgage goes down. Yes the value of the home will go up and down with the economy but time goes by and you have paid down $20,000 or $100,000 and you can sell it in 5 years. You can’t do that with the last 5 to 8 years you have been renting, can you.
It is not if Interest Rates on Homes will go up, it is more like when. When Interest Rates do go up, a Woodbury MN Home Buyer has to pay more per month to the bank. That limits how much of a home in Woodbury you can afford. For instance, you’re approved right now for a home at $180,000 at 5% your home payment would be $1,293.37.
Now if we take that home mortgage loan amount of $1,293.37 and increase the interest rate to 6.5%. We lose $27,000 in home buying power.
Let’s look at homes for sale in the $180,000 Range in Woodbury MN compared to $153,000. With inventory so low in Woodbury MN, there may not be any homes for sale at the moment. This means if that home loan interest rate goes up, you may not even be able to buy a home in Woodbury MN.
$150000 to $180000 Price range in Woodbury MN
Below $150,000 in Woodbury MN
Student loan debt is totaling 1.5 Trillion in America. Most student loans are 10 years or less with an interest rate of 5% or more. When you refinance your home in Woodbury MN, you can take out what is called a 2nd mortgage or a HELOC. You can pay off credit cards or that student loan. Since the 2nd mortgage has a longer term than your student loan it will help you lower your total monthly payment. You can also sell the house at some point and pay off that 2nd loan. You can’t sell a student loan. You can’t bankruptcy them away as far as we have heard. If you need help with refinancing your student loan into your mortgage feel free to reach out to us and we will give you a home loan specialist in Woodbury MN that can help you.