Many of the baby boomers out there will relate to this article. We have seen interest rates at above 15% and were thrilled to get a mortgage under 10%. The younger crowd has never seen the inflation we saw during the early 80's...

In recent years, lets say 10, I believe the highest rate I recall is about 7%, maybe 7 1/2%. All in all a pretty good rate and yet today, people are very leery to purchase homes when the rate is 6 1/2. Tempting as it may be to wait for rates to get lower, there is no guarantee they will come down.

The big misconception is people believe rate increases cause the payment to shoot up dramatically. While there is an increase, a 1/4 point move is about $20 on a 100,000 mortgage per month. Yes, that is more, but in the big scheme of things, it should not keep you from purchasing a home.

Lenders also are at times willing to do a lock with a float down on the rate. This is the best of both worlds. It means that if the rate goes lower, you can get the lower rate. If it goes higher, you are protected. Check with your lender, the rules vary by lender.

This article is just a friendly reminder that interest rates are only part of the equation for deciding on a home purchase or refinance. So check your current rate on your existing mortgage or if you are considering buying, the opportunities are really great right now.

Until next month, have a warm and sunny Summer...

Charlene