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Why Buyers May Want To Act Now

Mortgage rates are at their highest levels in more than four years. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 4.46 % last week, and that is largely anticipated to increase since the Fed's said it is likely to raise its short-term interest rates this year. That will most likely prompt mortgage rates to increase at least three times this year, starting this month.

Rate increases can have an impact on your mortgage payments, as well as your ability to qualify for a home loan. (Example: On a $300,000 house with a 30-year fixed-rate mortgage and 20% down payment, the difference between a 4.0% and 5.0% mortgage rate is $142 a month.) Calculated over the life of the loan, that is more than $51,000 of additional interest! It is not likely that interest rates would jump to 1% at one time, but incrementally is possible.

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