New Jersey Mortgage Interest Rates: How Low Can They Go?
Maybe the better question—if you’re considering building or buying in the New Jersey area—is: How low do they need to go? The fact is that mortgage interest rates are extremely attractive right now.
The chart below (from http://realestate.yahoo.com/loans) gives a pretty good indication of where rates have been headed for the last 6 months. Will they continue to head down more—or are we close to the bottom? The experts seem to contradict each other at every turn. But how low is low enough? And how much does it matter to you?
Obviously, the lower the rate, the less it costs you to borrow money—and the more home you can get for your money. But at some point the difference in rates doesn’t matter—if you can’t get the home you want.
The interest rates on mortgages are in a constant state of change. Rates can move down or up on a daily—or even an hourly—basis. And waiting for the absolute lowest rate doesn’t always work out. Even if you make your decision to borrow at the moment the rates hit bottom, you may not get that rate by the time the paperwork is done—unless you lock in that rate with your lender. Some lenders will let you lock in a rate for a specified period (15 days,
45 days, or even 60 days). But the longer you take to make your final decision, the more it will cost you.
Nobody wants to pay more than they have to, but at some point saving a little “just a little bit more” doesn’t make sense. Rates are really low right now. Will they go lower? Maybe. Maybe not. How much more will you really save if they do drop a bit more?
The bigger question is whether you can get the home you really want—with all of the features and amenities your really want, in an area you’ll love—and still get a good deal. When buying a home, it’s really not about getting the lowest price. It’s about getting the most value. Right now, there is a lot of value to be had. Buyers are in the driver’s seat now. Is now the time to make your investment in what you really want?
