This Home-buying Strategy Could Come Back in Style as Mortgage Rates Rise

  • TransUnion predicts that average rates on 30-year mortgages could hit 5 percent by the end of 2019.
  • In some cases, it could make sense to pay your lender a fee in exchange for a lower interest rate. This is known as “points.” As a result, you may reduce your monthly payments.
  • Before you commit, consider how long you’ll be residing in your new home and whether you might be better off using the extra cash to boost your down payment.

With mortgage rates poised to rise, it might be time to dust off a strategy that could help prospective homeowners afford their new abode.

TransUnion, one of three major credit bureaus, predicted that the average interest rate on a 30-year mortgage would approach 5 percent by the end of 2019.

This rate is a far cry from the heyday of double-digit interest rates in the 1980s, but it’s a noticeable change from where rates were in the last year.

by Darla Mercado, CNBC | Read more >>

2019-01-17T10:30:29+00:00