Less is more.  If you’re new to investing in real estate and don’t know the first thing about interest rates, here’s a good tip: the higher the interest rate, the more the payment is going to be. High interest rates mean you will have to pay back more on the money you borrow.

Another good rule of thumb is that affordability increases if you use an adjustable rate mortgage. There are many options; talk to your lender about the various programs they offer for financing. If you need a referral, please let us know.

Not even the feds know for sure. Mortgage interest rates are affected by many unpredictable political, economic and social events, so there is no guarantee what direction interest rates will go despite predictions from the experts. Therefore, make your financial decisions based on what your needs are today, including your budget and future plans. Interest rates can change daily.

Locking in rates assures you the lowest interest rate.  If you do decide you want to lock in at a certain interest rate, you will need to complete a loan application and send it to your lender as soon as possible; making a loan application and getting pre-qualified would be the first step to buying a new home or investment property. This must be done so your commitment doesn’t run out before your loan is approved. Follow up and be sure that the lender is receiving all of the necessary documentation. Get a property appraisal through your lender as soon as possible; it usually costs around $400.

Don’t obsess and miss a good real estate deal.  Although rising interest rates can create problems for home buyers, waiting and hoping for a lower rate is not necessarily a smart move. You may end up with a higher payment if rates go up. Also, refinancing is always an option in the event that interest rates come down.