Interest Rates

We recently experienced the lowest interest rates in the history of the Vail/Beaver Creek market. Those rates, though, have been on the rise recently. How does that impact you?

Let’s look at the difference a jump from four percent to six percent creates. At four percent, every $100,00 you borrow costs around $477 a month. If the rates increases to six percent, every $100,000 costs $599 a month. That’s a difference of $1,465 a year.

While that may not seem significant, what if you need a larger loan? If you need to borrow a million dollars that $1,465 difference a year is now $14,655.60. This will eliminate a lot of buyers.

Increased rates slow the market. They decrease the buyer’s pool and thus home prices drop for sellers. Now is the time to take advantage of the market. Give me a call or send me an email at dave@davecole.com