Category Archives: Interest rates

From the inbox: Should I roll debt into my mortgage?

I’m in a coding bootcamp but wanted to take a moment over lunch here to answer this question that I’m seeing pop up via email, PM and I’m also hearing more ads on the radio offering this.

I think this is a marketing tactic related to the rising interest rates and home prices (as companies try to generate additional revenue).

This is not legal or financial advice but I believe the short answer is: it depends.

The longer answer is it depends on your circumstances. While rolling high interest debt into your lower rate mortgage may sound good , there are a number of variables to consider, two of which are:

  1. If you take the surplus of income and turn it around into paying down your home mortgage, that could be a good thing.
  2. Doing so raises the value at which you have to sell your home (in a peaking market, this may cause trouble for you, if you have to sell).

What do I mean by the first option?  If one has credit card debt of $25K that’s costing $450 in interest monthly, you may be able to roll that into a mortgage refi. But consider that may raise your mortgage payment. If it does so by $125, that leaves you $325. If you are disciplined and build an emergency fund with that or invest it or turn it back around into paying down the principal of the home, I could see this being a good option.

However!!! (emphasis intentional), know that it raises the amount you need to sell your home at by that corresponding value plus some (if you use a percentage based commission agent to sell, for example). If you are looking to stay in your home long term, that may still be a good option. But – and here’s the bottom line of this post – please understand it’s putting you in a position where you must have continued market appreciation to sell (unless you have a lot of equity). 

And if you have a short horizon on home ownership, or are looking to sell soon, this could put you in a bad spot.

Lower mortgage rates unlikely to continue…

as interest rates rise, market dynamics shift. Personally speaking, I intend to buy another property or two this year. If you’re looking to buy or sell, please call Rob at 719-440-6626.

Colorado Springs sees 16 months increased prices in homes…

…this is a great place to live, as evidenced by the sixteen month rise in home prices and sales we’ve seen in our city.

This is good news for sellers. Additionally, combined with still near historically low mortgage rates, buyers who are looking to move into the city can still get good deals!

Looking to buy or sell in Colorado Springs, please give Rob a call at 719-440-6626!

Interest rates and housing: very much correlated

How much do interest rates affect housing? Likely significantly. Courtesy of Empire Title, mortgage applications nationally have fallen for week over week for four weeks now and are the lowest since July 2011. Also, refinances are down 20% in the last month and purchases have fallen 6.9%.

What does that mean for you? This is just my opinion but I think this translates into more advantage to a buyer. If you want to sell your home, you may want to list soon to capitalize on what are still phenomenal mortgage rates. The same goes for buyers; the numbers above seem to me to indicate an increase in a buyer’s power, as well.

Interested in buying, selling or renting in Colorado Springs, please call Rob @ 719.440.6266!

Mortgage rates over the last 30 years…

…here’s a good reference for your review. It charts mortgage rates over the last few decades. Very interesting information!

Mortgage rate chart

If you’re looking to buy, sell or rent in Colorado Springs, please consider calling Rob @ 719.440.6626!