04/29/2022
Rumor has it interest rates are gonna keep rising📈
I’m talking to buyers every day about rates and the role they play in buying a home. And while no one can be certain of what the future holds, it’s true that rates are trending upwards. That said, I wanted to share some basic info about interest and how it works so you can make the best decision given your situation.
An interest rate is essentially the price you’ll pay to borrow money to purchase a home.
Interest rates are displayed a percentage of the total amount borrowed (also known as the principal).
Here’s a straightforward example: Say you borrow $500, and the interest rate is 8%. At the end of the year, you’ll owe $540 ($500 x 0.08).
Lenders make money off the mortgage interest. In the example above, the lender would pocket the $40.
Lenders determine your interest rate using a variety of factors; however, the most important is your credit score. A credit score predicts how likely you are to pay back a loan on time—the higher your score, the lower your interest rate.
If you want to talk more, let me know. I’m here to help you navigate every part of buying a home!
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Nicole Moore, REALTOR®️
Homesmart Encore
Las Vegas, Nevada
📱702-848-2447
📧 [email protected]
🖱www.nicolemoorerealty.com
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