How to Buy a Home Despite High Interest Rates
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ASB July 12, 2022 | 2 MIN read PersonalDon’t let rising interest rates and an uncertain market environment deter you from making your homeownership dreams a reality. Michelle Luxton, vice president and executive residential loan officer, shares quick tips on how to navigate the competitive home buying process in any market.
Tip #1: The Best Time to Buy a Home is Now!
Higher interest rates might price out other potential homebuyers, resulting in less competition and more opportunity to make an offer on the Hawaii home of your dreams. Historically, home prices in Hawaii have continued to increase each year so waiting for significant price drops may not be the best solution. Chances are prices will continue to rise.
Determine a comfortable budget by using our quick and easy online calculators.
Tip #2: Find a Mortgage Financing Option That Fits Your Goals
Compare different mortgage financing options to find one that best fits your needs and goals. Fixed-rate and adjustable-rate mortgage loans can offer various benefits when it comes to your monthly principal and interest payments. At American Savings Bank, we offer a wide range of tools and resources to help you find the right solution:
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Fixed-Rate Mortgages offer a fixed interest rate for the entire term of the loan resulting in an interest rate that does not fluctuate with market conditions.
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Adjustable-Rate Mortgages offer lower initial payments and an introductory fixed rate period (often 7 or 10 years). After the fixed period, the rate and monthly principal and interest payments will generally change annually or semi-annually based on the terms of the loan and market conditions.
“Understanding the difference between mortgage interest rates and annual percentage rates can help you choose the best loan products that are right for you,” says Luxton.
Rising interest rates and a volatile market may cause uncertainty for potential home buyers, but at American Savings Bank, we can help you navigate the numerous mortgage options available and put you on the path towards achieving your Hawaii homeownership dreams.
Speak with one of our experienced home loan officers to get started today.