Worried About Future Mortgage Rate Increases? Here’s How to ‘Stress Test’ Your Finances

When it comes to real estate, there are always going to be upswings in the market that will have an impact on your mortgage payment and overall financial health. However, with a fluctuating market here to stay, you may be wondering how you can guard your biggest investment and your finances against rate increases. If you’re concerned about rates on the rise, here are a few tips to test out you’re fiscal well-being.

Calculate Your Debt-To-Income Ratio

It’s beneficial to determine your DTI ratio prior to purchasing a home, but since debt and housing costs are always fluctuating, calculating this number again can be a wakeup call. By adding up your monthly expenditures (including any debt), and dividing that number by your pre-tax income, you’ll be able to determine your DTI percentage. While it’s ideal to have a percentage of less than 28%, if your expenditures have risen above this number, it may be time to take a look at your monthly budget and see what you can cut out.

Do You Have Emergency Savings?

Many people make a habit of putting money into their retirement funds each paycheck, but it’s equally important to have emergency savings you can access in the event of car repairs, home maintenance issues or an unforeseen medical problem. While it’s often suggested that a person should have a minimum of 3 months of expenses at their disposal, saving more than this can make you even more prepared in the event that a rate increase requires you to dive into other funds.

Review Your Budget

It’s easy enough to have a monthly budget, but the hard part for most people is sticking to it on a day-to-day basis. If you’ve veered off the trail a little bit in this regard, sit down to review your expenditures and determine what your financial outlook would be if you experienced an interest rate bump next month. In the event that there’s very little cushion and no money for savings, it may be worth your time to craft a new budget that gives you a bit more wiggle room.

Many people are uncertain about what the short-term economy will bring for their mortgage rates, but by reviewing your budget and maintaining emergency savings, you can be better prepared for the future. If you’re currently considering purchasing a home, give me a call for more information – J.P. Cook – 602-320-4253.

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4442 W Hannah Street San Tan Valley, AZ 85144

New

$459,990

4 Beds

3 Baths

2,342 SqFt

Status Active

MLS # 6692712

Property Type Single Family Residence

Price Type --

Brand new, energy-efficient home available NOW! A unique single-story home featuring a social living area. Umber cabinets with hardware, dusty white granite countertops, stone-look tile flooring and warm beige carpet in our Calm package. Enjoy secluded primary suites at San Tan Groves in San Tan Valley. San Tan Groves is conveniently located minutes from San Tan Mountain Regional Park, making morning hikes easy! This community boasts ample storage and a 5 bedroom layout. Enjoy dining and entertainment just a few miles away. We build each home with innovative, energy-efficient features that cut down on utility bills so you can afford to do more living.* Each of our homes is built with innovative, energy-efficient features designed to help you enjoy more savings, better health,

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2101 W Shelly Avenue Apache Junction, AZ 85120

$459,990

4 Beds

2.5 Baths

2,051 SqFt

Status Active

MLS # 6688460

Property Type Single Family Residence

Price Type --

Welcome to Radiance at Superstition Vistas, a brand new master planned community located on the border where Mesa meets Apache Junction. This is a rare opportunity for optimal living - to have the convenience of City living while enjoying the breathtaking Superstition mountains! Small town feel meets modern amenities at its best! The Hanna 2052 sq ft, 4 bed/2.5 bath adorable, energy efficient home in which you will find tile in all common areas, 9 foot ceilings and on trend extra bright white walls.. Located close to the 24, 60 & 202.

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16035 W El Cortez Place Surprise, AZ 85387

$459,990

4 Beds

2 Baths

2,139 SqFt

Status Active

MLS # 6557712

Property Type Single Family Residence

Price Type --

Brand new, energy-efficient home available NOW! This single-story features a split floorplan with the primary suite tucked away in the back of the home. White cabinets with ice quartz countertop and backsplash. Grey tile flooring in our Balanced package. Paloma Creek - Reserve Series is coming soon to Surprise. Strategically located near Loop 303, this family friendly community offers easy access to the amenities of metro Phoenix and includes an exclusive community center on your doorstep. Each energy-efficient home comes standard with features that allow your whole family to live better and breathe easier too.* Each of our homes is built with innovative, energy-efficient features designed to help you enjoy more savings, better health, real comfort and peace of mind.

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22854 N 126th Lane Sun City West, AZ 85375

$459,990

4 Beds

2 Baths

1,832 SqFt

Status Active

MLS # 6671311

Property Type Single Family Residence

Price Type --

Brand new, energy-efficient home available by May 2024! The expansive great room of the Mason is perfect for watching the big game with friends. Espresso cabinets with white/grey granite countertops, wood-look tile flooring with multi-tone carpet in our Elemental package. Last chance to own at Camino Crossing in Sun City West. With convenient access to the Loop 303, this community provides easy access to schools, major employers, shopping, dining and entertainment. Your family will love spending time at the community park complete with a playground, corn hole and ramadas. We also build each home with innovative, energy-efficient features that cut down on utility bills so you can afford to do more living.*

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