Sally has been in the market to buy a home for a year now, but she’s not biding her time, waiting for home prices to fall. She’s watched the 30-year fixed home loan interest rate drop to 6.525% - but she wonders if it will go lower? Should she wait?

Over the past several years, the US housing market has seen the sharpest interest rate increase in decades, and sales are plummeting. Fortunately, the interest rates have dipped this year. Chances are, interest rates aren’t going to go much lower than they are right now.

The US economy has been hit hard – it’s been said that we’re in a recession. And, due to a possible recession, interest rates increase to combat inflation. It hurts everyone, and if you’re looking to buy a home, your time to buy is now.

Interest rates fluctuate – it’s natural in any economy. But, due to the recession and inflation, we’re seeing record-high interest rates, which translate to fractions of a percentage point dramatically increasing the amount you pay for a thirty-year fixed loan. For example, if you’re looking to buy a $300,000 house, you’ll pay 6.525% interest – or $320,341.74 in interest over the life of your 30-year loan. Increase that APR to 6.53%, and you’ll pay $335,234.70 – or almost FIFTEEN thousand dollars more just with a ¼ percentage point increase.

As interest rates fluctuate, it can be tempting to sit back and wait for rates to go down again – but looking at the recent trends, rates aren’t going down again any time soon. Imagine a year from now, the interest rate can be above 7.5% - bringing your total interest costs to $379,293.06 – or $58,000 more than if you locked in the current APR. That 6.525% APR would save you a bundle on your monthly mortgage and on your overall thirty-year loan.

More than anything, you need to make sure that you have agood credit score. If you don’t know your credit score, go to www.annualcreditreport.com, you’re entitled to one free credit report per year. Look over your credit report, and take note of your debts and your credit-to-debt ratio. Make sure your current debts stay current, and you have no outstanding unpaid debts. Also ensure that you have more credit than debt, as lenders look at this closely. Your interest rate is directly related to your credit score – do everything within your power to increase your credit score rating.

Then, shop around! Call several mortgage companies and tell them you’re shopping around to find the best rate for your loan. They’ll be more than happy to provide you their best rate for your situation.

When you’re buying a home, price shouldn’t be your determining factor. Truth be told, you’ll pay much more on a $300k home with a poor interest rate than you’d pay on a $350 home with a great rate. Taking this into consideration, you may be able to find your dream home and save thousands of dollars in the process.

Once you find a good interest rate and get pre-approved for a loan, find a great Panama City Realtor and find your Florida Dream Home.