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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7790 W Emerson Drive Kirkland, AZ 86332

$475,000

3 Beds

3 Baths

2,593 SqFt

Status Active

MLS # 6668827

Property Type Single Family Residence

Price Type --

NO HOA!!! This ranch-style hilltop home has million dollar, panoramic views for miles, nearly 7 acres of fenced and gated land, outbuildings, and potential guest house! You will love your full views of both sunrise and sunset, as well as the vast and powerful mountain ranges that fill the horizon. The peace and privacy you will find while listening to the abundant wildlife is unmatched. All your toys and hobbies will find a home on this perfectly situated property on the paved county road. The home is nearly 2600 sqft - with 3 large bedrooms, 2 bonus rooms, 3 full baths, an open kitchen with pantry, plenty of cabinet space, dining room, living room, and huge climate controlled laundry room that can double as an office, media room, or bonus space. Add to that a large attached 2-car Garage that has tons of extra space with shelves and built-in counters, well house and well equipment, detached exterior 16x12 shed (included with full-price offer only), and 600 sqft storage building with the potential to become a guest house or rental. New roof, updated flooring, and more! see attached docs for a breakdown of upgrades/updates. This town is a well-kept Prescott area secret! This peaceful location will allow you to take a deep breath and reset! 25 minutes (17 miles) from downtown Prescott and less than an hour from Wickenburg. If you are looking for rural yet convenient, don't overlook Wilhoit!

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20725 W Colter Street Buckeye, AZ 85396

$475,000

2 Beds

2 Baths

1,581 SqFt

Status Active

MLS # 6673074

Property Type Single Family Residence

Price Type --

Tenant Occupied until May 20th. This Villa is a great full-time residence, or lock and leave, or an investment property generating $20K NET income per year. Villa is situated on an elevated lot with charming tree-lined walking pathway. Mountainside is the only gated community in Victory (55+), featuring private pool and social areas for residents. Enjoy the gourmet kitchen complete with designer-selected features from top to bottom including stainless appliances. You'll appreciate the 10' ceilings and abundant natural light. The family room has large dual pane low E 3 energy efficient picture windows looking out onto your private outdoor paver patio. An oversized super shower and upgraded surfaces highlight the spa-like owners bath. Two bedrooms AND office/den w French doors.

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1741 W Paisley Drive San Tan Valley, AZ 85144

$475,000

4 Beds

2 Baths

1,863 SqFt

Status Active

MLS # 6673545

Property Type Single Family Residence

Price Type --

Home Qualifies for No Downpayment Loans! Motivated Seller ~ Bring All Offers! Located in the VERY POPULAR subdivision CIRCLE CROSS RANCH in NORTH San Tan Valley. SUPER CLEAN & UPDATED MOVE IN READY 1 STORY Ranch home with 4 Bedrooms (4th Bedroom is Large Den) with HEATED POOL and BUILT in 2012! A HUGE greenbelt right across the street! LOW Maintenance Yards ATTACHED Extended 2 Car Garage w/ EXTRA STORAGE! Amazing Stacked Brick accent wall in living Room! LARGE Open Kitchen with Stainless Steel Appliances! All Appliances included! Even W/D! Tons of Walking/Biking Trails. Close to LOTS of shopping and restaurants. Easy access to Banner Ironwood Hospital, Minutes from New 24 Freeway!

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3620 E Sumner Place Rimrock, AZ 86335

$475,000

3 Beds

2 Baths

1,716 SqFt

Status Active

MLS # 6672634

Property Type Single Family Residence

Price Type --

This stunning brand new 3 bedroom/2 bath home is in the pristine gated community of Beaver Creek Preserve in Rimrock AZ. Beautifully done Open floor plan with granite/quartz countertops, kitchen island, wood cabinetry and lots of storage and tile flooring. Private back Patio. Huge RV Storage! No RV? Then sky's the limit of what you can do with that space! Storage for your motorcycles, ATV's, Golf Carts! Turn it into a sports Room w/pool table, Ping-Pong, Man Cave, or add a platform for more storage, build a loft, Car lift.. really anything! Great private space between neighbor's min 20ft easements. Clubhouse offers pool tennis, Lounge area, BBQ for all you Friends and Family! Great location just off the freeway, Peaceful and Quiet! 20 min to Cottonwood, 25 min to Sedona, 1 hr to Flagstaff Lots of hiking trails, fishing and just beautiful scenery! ** Price reflects a 30K incentive reduction by using the builders preferred lender! **Come check it out! Make us an offer today and we can make it work!

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