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March 24, 2014 11:24 am
We have often suggested that potential home buyers consider rising interest rates when thinking about the true cost of a home. The longer they wait the higher the mortgage payment if rates continue to increase as is projected by Fannie Mae, Freddie Mac, the National Association of Realtors and the Mortgage Bankers Association. In its latest issue, Money Magazine warned their readership of the same ramification if they put off the purchase of a home. Here is what they said: "BE MINDFUL OF RATES. The average interest rate on a 30-year fixed loan is predicted to climb from the current 4.4% to 5.3% by the 2015 spring buying season, according to Freddie Mac. For a $250,000 loan, that means that a borrower who waits would pay $136 more per month and an additional $49,090 in interest over the life of the loan. Will you need a big loan? Better to act soon before rates tick up."