Rising interest rates and mortgages: Sioux Falls realtors share options for getting into your home
SIOUX FALLS, S.D. (Dakota News Now) -With rising interest rates, housing can be concerning. But can you still get a mortgage? We talked to several realtors and found out that there are many options so that you can get into your home.
In recent years, South Dakotans have had opportunities to buy big houses with low-interest rates.
“You know, we just had a really unique pocket of time,” said Daniel Brunz, a realtor with Keller Williams. “Two years ago, interest rates were low, and it was incentivizing people to kind of go crazy.”
Although it’s frustrating to see a higher mortgage rate and payments increase, rent is also rising in many locations. However, realtor Brunz believes especially with an adjustment of your expectations, you still could be a homeowner.
“It’s a lot better to buy something you can afford than to wait longer because you’re missing out on all that equity,” said Brunz.
So what are the financing options that could help you get into a mortgage? Realtor Lizzy Doohen says an adjustable-rate mortgage, now with more limitations for increases, may save you money in the long run. There are other options too:
“Buy down options where you can put some money down. A lot of times, the buyers can get that from the sellers during negotiations,” said Doohen.
In the Sioux Falls area, mortgage rates aren’t the only challenge. Finding a home below 300 thousand requires patience.
“There’s still not enough inventory in the 150 to 250 range, which is a lot of first-time homebuyers,” said Brunz. “We can’t predict the future, and so if you have a stable job, and you’re renting, typically you can get a mortgage for very close to what you’re renting. So you’re paying somebody’s mortgage, and it might as well be your own.”
Interest rates have certainly been higher. Back in the early 80s, according to the US Department of Treasury, interest was nearly 16%. Back then, people were assuming mortgages to get a lower interest rate. And we may see more of that in the future.
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