Experts say it would be advantageous for homebuyers to take advantage of the current interest rates before they get any higher. Mortgage rates are currently near 5 percent, and forecasts predict rates will increase to 6 percent in 2014. The Federal Reserve also plans to taper the monthly bond purchasing program, which is expected to raise the mortgage rates even higher. A recent blog post on realtor.com® illustrates the long term effects of rising mortgage rates:

5 percent interest rate – A buyer gets a 30-year fixed-rate mortgage at a 5 percent  interest rate on a $300,000 loan:
Monthly payment = $1,610.46
Total payment = $579,569.69
Total interest = $279,769.69

6 percent interest rate – A buyer gets a 30-year fixed-rate mortgage at 6 percent interest rate on a $300,000 loan:
Monthly payment = $1,798.65
Total payment = $647,515.44
Total interest = $347,515.44

The buyer with a 6 percent interest rate would pay over $67,000 dollars more for a $300,000 dollar home than a buyer with 5 percent interest rate on the same amount.

Don’t miss the opportunity to lock in a low interest rate on an extraordinary Sierra Sotheby’s International Realty property. Our local brokerage offices enable buyers to find representatives experienced in offering exceptional homes in Lake Tahoe. For more information, visit www.sierrasothebysrealty.com and “Like” us on Facebook.