DON’T BE AFRAID TO SELL YOUR HOME BECAUSE OF INTEREST RATES

If you’re afraid to sell your home because of interest rates, this is for you. Over 60% of the interest rates in America start with a 2 or 3, and another 20% of rates in America start with a 4. So over 80% of loans in America on a home start with a 4 or less. And the average interest rate right now is around 6%. So when a seller is looking at their interest rate, they think, why would I give up a 3% rate for a 6%. But when looking at the complete scenario, a lot of times they aren’t seeing the full picture. They’re holding on to $30,000 to $50,000 in debt or more at a 12% to 15% interest rate. But all they’re focused on is trading their 3% for a 6% instead of taking a step back to look at the full picture. You really want the home in an area that you’re hoping for or in a specific school district or home with more space and other things that you don’t currently have. So when looking at minimizing or getting rid of that high interest debt, a scenario which uses some of the equity from the sale of the home to get rid of those other payments makes more sense instead of putting it all down on a new home. By doing so, it could mean that your total monthly payments for your household budget without the debt and with the new mortgage payment will be less than or equal to where you’re currently paying, but for the home that you really want.