If you’re shopping for a home in Smyrna, particularly if you’re a first time buyer, the recent predictions that mortgage rates will head upward might have you worried. There isn’t necessarily much to worry about and, in fact, a small rise in rates might not affect you much at all.

 

Mortgage Rates Don’t Always Affect the Housing Market that Much

 

The first thing to keep in mind is that, even though financial news outlets tend to report breathlessly on any change in mortgage interest rates, those rates aren’t always that significant to the housing market. For example, while data does show that mortgage originations go down when interest rates go up—not surprising—it also shows that the actual affect on the housing market in terms of whether people decide to buy or sell aren’t necessarily significant. Buyers still look for homes and, where sellers are concerned, their reasons for selling aren’t necessarily tied to interest rates at all. The bottom line is, if mortgage rates go up a bit, that doesn’t mean that the housing market will change in a particularly significant way.

 

You Still Have a Lot of Control Over the Rates You Get

 

Remember that mortgage rates are only one factor in determining how much you pay for the money you borrow to finance your home. Your credit rating, employment record, down payment, and many other factors all play into your total cost of lending and, for many borrowers, one or more of those elements will have more effect on their prospects for getting lending than will the current mortgage rates. If you’re really serious about finding the best possible deal, mortgage brokers can guide you through the process of getting the least expensive financing.

 

Another thing to keep in mind is that, if you’re working with a good Realtor, it’s quite possible that you’ll end up borrowing less than you planned, simply because Realtors know how to make deals on properties. The amount of money they can save you may well offset the slightly increased cost of borrowing at higher interest rates. In many regards, what you pay for your home is most dependent upon the diligence and negotiating skill of us. Between having a good Realtor, keeping your credit in good repair, and avoiding taking out any new lending, you have a lot more control over how much you pay for lending than you might think, so don’t be discouraged if interest rates go up, even if you’re a first-time buyer.