The Fed just raised interest rates by .25%….so what implications does this have for home buyers? Aside from raising the rates that lenders will be offering, another effect on buyers is a 1% raise in your DTI (debt-to-income) ratio. While this may seem startling and may have some home buyers second guessing, don’t be alarmed.

First off, all things considered, current rates are still very favorable. There is always going to be sticker shock when you learn that a .5% raise equates to $80 or $100 more a month, but rates overall are still relatively low. Since the Fed cited inflation concerns, we could see a continual rise in interest rates, so now is a good time to buy. Secondly, while a raise does in in turn push your DTI ratio higher, it is not as high as you may think. That 1% can easily be offset by paying off credit cards.
Nonetheless, for those home buyers currently shopping the market, set a deadline now for when you’ll be closing escrow, sit down with your lender and determine all of your options before 2017, and lock in your interest rate as soon as possible.
As we’ve mentioned, November to December is the best time to buy for a number of reasons and, now, securing an acceptable rate is another motivating factor. If you’re seriously considering buying, the sooner you can make the move the better.

Kurt Galitski

Meet Kurt Galitski - The Kurt Real Estate Group, your new best friend. Distinctive Strategies that Deliver Record-Setting Results. When you combine Kurt’s passion and knowledge of the real estate market, you really gain an appreciation for what makes Kurt different. But what truly sets him apart from the crowd are his 5 distinctive strategies and his property management… For Kurt, getting into real estate was not an accident, it was a deliberate and calculated decision to deliver a better experience to home buyers, sellers, and landlords that they have ever received before. Today, you could ask any one of hundreds of clients, read his Yelp reviews, or look at his track record of being featured in Orange Coast Magazine in excess of eight consecu­tive years and you too will say mission accomplished. www.KurtRealEstate.com www.KurtPropertyManagement.com 877-957-6677

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