Are You an Interest Rate Racist?
Interest Rates & Racism – how does one make that connection? It’s all about prejudice and bias. Some buyers hate all rates except the lowest one, but taking other factors into consideration, a higher rate may actually save you money in the long-term.
Americans are historically insatiable consumers. We’re not big savers. For many Americans, the home represents the largest chunk of their savings. Making a poor decision in financing can have significant consequences.
But many home buyers get hung up on the interest rate. Their prejudiced, biased, or ignorant in their understanding of the other factors influencing the long-term return on their investment.
“The real key to real estate is how you finance it – that dictates your success,” says Dave Savage, co-founder of The Mortgage Coach.
- Too many people focus on the interest rate and are blind to the total picture.
- Their are many loan programs available to consumers and each needs to be considered.
- The loan amount and the down payment need careful consideration
Examine the situation according to how long you plan to live in the home. If you think you will only be living in the home for 5 to 7 years, this has totally different financial implications than owning a home for 30 years.
There are some really great home buying opportunities available. Don’t get hung up on just price or interest rate. Sit down with a professional and crunch the numbers according to six different scenarios.
Don’t be an interest rate racist – consider all rates equally. Find the one that works best for you – regardless of your beliefs.
If you’re interested in foreclosures and bank owned properties contact Craig (925) 984–4910
