Interest rates for mortgages tend to rise and fall just like the ebb and flow of real estate from a buyer’s market to a seller’s market. Because of this, it can be hard to tell whether you should jump on a rate or wait and see if it gets better. The problem with waiting is you risk the rate possibly climbing higher instead of lower. So, what’s a homeowner to do?
Let’s take a look at current mortgage rates in West Michigan to help you understand and decide whether an interest rate is good and when it makes sense to take advantage of it. But first, let’s define how interest rates are determined and what a good interest rate means for you.
What is a Good Interest Rate on a Mortgage, and How Do I Get It?
Mortgage rates fluctuate over time due to factors like the state of the economy and inflation, but they can also differ depending upon several other influences, including:
- Your financial standing. Before quoting you a rate, lenders will take into consideration the consistency of your finances, how much debt you have, and your credit score. The better your record reflects in these areas, the better rate you will get.
- Which lender you use. You should always shop around and compare the rates different lenders quote you to ensure you are getting the best interest rate possible.
- The type of mortgage you choose. There are several different types of home loans available, and which you choose affects the rate you get. Your lender can help you determine what’s best for you and your circumstances.
- The duration of your mortgage. The length of your loan makes a difference too. Short-term loans, such as a 15-year mortgage, will have lower rates than a longer term, 30-year loan. Keep in mind that your down payment amount will also affect your monthly mortgage payments and how long you’ll need to make them.
With all that in mind, a “good rate” is truly different for everyone, depending on your individual situation and what you can comfortably afford. So you might want to think of it this way: It’s not necessarily about getting a good rate, but about getting the best rate for you.
What Are Interest Rates Currently and How Are They Trending?
Current interest rates around West Michigan have been consistently low, ranging anywhere from 2.5% to 3.25%. While there is never really any guarantee for what will happen next, experts believe rates are unlikely to stay this low.
Since rates have been so low for months now, it’s predicted that they will begin to climb as we enter the next year, trending higher than current interest rates due to changes in economic conditions, inflation, and other contributing factors like the supply and demand of the real estate market.
Get a Good Interest Rate Before It’s Gone!
That means if you’re in the market for a house or are considering refinancing the house you have, now’s the time to secure a good rate! After all, the new year is coming fast and if the experts are right, rates will soon start to rise.
Need Help Getting in a Home with a Good Interest Rate?
If you’re buying a home in West Michigan, it’s important to know what mortgage rates are available to you. Not sure what to expect or where to turn? Let the experts at BlueWest Properties help. We know the area and have built relationships with local lenders, so we can not only assist you with finding the house of your dreams but also make sure you can afford it with the best rate possible! Contact us today to get started.