What Is a Mortgage and How Does It Work?
This seems like a timely discussion as the feds look to increase rates by another 0.75%, the largest increase since 1994. They are doing this to curb inflation which is at 8.6% as of last month, the highest since 1981. What does this mean for home buying power? This video was made a few months ago when the rates were at 3%, now it has doubled to over 6%. Your mortgage for the same property now costs about 30% more than just a few months ago. This will slow down buyers and competition but not immediately as inventory still remains historically low. For sellers, your window of opportunity to cash out at the height of the market may be running out. For buyers, I do have one lender offering 4% at 0 points if you go into escrow before the end of July. That would be like going back in time which everyone always wishes they did when buying property in Hawaii. Ask me questions, I’m always happy to help! ?