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      Bryan Buckingham

      Where Are Mortgage Rates Headed? This Fall? Next Year?

      The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to look at where rates are headed when deciding to buy now or wait until next year.

      Below is a chart created using Freddie Mac’s July 2015 U.S. Economic & Housing Marketing Outlook. As you can see interest rates are projected to increase steadily over the course of the next 12 months.

      30 Year Fixed Rate Prediction | Keeping Current Matters

      How Will This Impact Your Mortgage Payment?

      Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

      Dr. Frank Nothaft, the SVP & Chief Economist for CoreLogic, had this to say in their latest MarketPulse:

      “If you are thinking of buying a home and have the financial means to do so, this could be a good time to take a look at the neighborhoods you are interested in. We expect home prices in our national index to be up about 4.3% in the next 12 months, and mortgage rates are also likely to increase over the next year.”

      If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

      Bottom Line

      Even a small increase in interest rate can impact your family’s wealth. Meet with a local real estate professional to evaluate your ability to purchase your dream home.

      This Advice on Home Ownership Hasn't Changed in 200 Years

      Last month, we reported that billionaire John Paulson believes in the financial advantages of homeownership. He has often repeated:

      "I think, from an individual perspective, the best deal investment you can make is to buy a primary residence that you're the owner-occupier of.”

      However, he has not been the only billionaire to give such advice. As a matter of fact, that same advice has been given by people of wealth throughout the history of our nation.

      Here is a quote often attributed to Theodore Roosevelt, 26th President of the United States and billionaire real estate developer:

      “Every person who invests in well-selected real estate … adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”

      Andrew Carnegie, one of the richest entrepreneurs in American history said:

       

      “90% of all millionaires became so through owning real estate.”

      Bottom Line

      If the same advice has been given by the wealthiest people in each era of our country’s history, perhaps we should take it.

      Empty Nesters Have Alternatives to Simple Downsizing

      The children have grown; home feels…a little empty…

      Many people assume that an empty nest means it’s downsizing time—time for a smaller house or condo. In truth, for many homeowners in the area, downsizing is just one of a number of appealing directions.

      It may sound obvious, but it’s your interests and plans that should guide your next step. After a lifetime of deferring to other people’s priorities, many of us are ill-prepared to think creatively about what it is we want. When we do, downsizing might not necessarily be the springboard to life’s next great adventure.

      For instance: consider Upsizing. Moving a smaller family into a larger home may sound backwards, but if you have special interests or hobbies that call for a lot of space, now may be the chance to add the workshop, rehearsal space, or studio you’ve always longed for. A larger home can also provide space for guests when the family (and it might be a growing one!) comes to visit.

      Have you always wanted to live near water, or be able to step out on the front porch any time of the day to drink in a panoramic view of the mountains?

      Or maybe the reverse, and you’d like to sample life in the city—urban living, with its museums, shows and restaurants on every corner. Alternatively, perhaps it’s time to look into one of the increasingly-popular planned communities; one built around a golf course, or one emphasizing social activities, clubs and outings that cater to older adults

      The serious point: dream a little! If not now, when? With the children out the door, this could finally be a chance to indulge yourself. Raising a family means putting other people’s needs first. Now it’s your turn. A luxury home or condo could have the amenities you’ve always wanted—a swimming pool or home spa, designer furniture or classic architecture. Your empty nest may give you the chance to own the kind of home you’ve only daydreamed about.

      Among the down-to-earth details you’ll want to consider before acting—

      · whether you’re truly ready to leave your Boston area home and community behind

      · the real estate market and comparative housing values in town and in alternative venues

      · health issue implications now and (as much as predictable) into the future

      Finally, give yourself time…enough time to be sure that the home ownership path you choose is one that’s most likely to prove rewarding. And remember, too, that I (or a qualified Realtor® wherever you land) is your invaluable resource. Do give us a call whenever you want to investigate your choices or leave us a message!  617-536-8000

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