Michiana buyers

What the rate actually changes

There are a thousand places to look up a rate. There are very few that tell you what it means for a house in Granger. That is the part I can help with.

Why I am not going to quote you a rate

I am a REALTOR, not a lender. I do not originate loans, I am not paid by any lender, and any number I put on this page would be a published national average that is not the rate you would actually get. Your rate depends on your credit, your down payment, the property, and which lender you use. Anyone who quotes you a rate without knowing those four things is guessing.

What I can tell you is what a move in rates does to the thing you actually care about, which is what you can buy.

The part that matters: buying power, not the rate

Rates move what your money buys, not just what your payment is. Roughly speaking, every one percentage point that rates move changes what a given monthly payment will support by around ten percent of the purchase price — in either direction.

In our market that is the difference between shopping the $250,000 band and shopping the $275,000 band. In St. Joseph County, where the median sale price is $250,000, one point of rate movement is the difference between competing for the median house and competing for a meaningfully nicer one.

My take

People wait for rates and miss houses. The house you lose while waiting is gone permanently; the rate you did not like can be refinanced. That is not a reason to overpay — it is a reason to make the decision about the house on the house, and the decision about the loan on the loan. They are two separate problems and treating them as one costs people the home they wanted.

What to actually do

  • Get a real pre-approval before you shop, not an online estimate. It is the only way to know your number instead of a national average.
  • Shop more than one lender. The spread between lenders on the same borrower is routinely larger than people expect, and it is entirely your money.
  • Decide your comfortable payment first, then work backwards to the price. Not the other way around.
  • Then call me and we will find what that number actually buys in the towns you want.

I do not have a lender I push and I do not get paid to refer you anywhere. If you want names of people locally who have done right by my clients, I will give you several and you can pick.

Need help buying or selling real estate?

Tell me what you're working on and I'll get back to you personally. No pressure, and if I'm not the right fit for you I'll say so.

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