Home News Looking to buy a car or home as interest rates soar? This is what you need to do

Looking to buy a car or home as interest rates soar? This is what you need to do

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Interest rates keep going up and it’s very expensive to borrow money to buy a house or a car.

Consumer adviser Clark Howard says there is a silver lining for those who need to borrow money to make big purchases.

If you’re looking to buy a house or a car right now, interest rates can seem pretty intimidating, but there may still be a deal that’s right for you.

Chara Fedke says her dog, Lux, is ready to garden and is ready to become a homeowner after the rent has gone up by nearly 10%.

“I bought my first home. I’ve lived in a rental all my life, so this is my first home,” Fedke said.

But when house prices and interest rates started to rise, things got a little scary.

“I was saving for a down payment, but then house prices skyrocketed, and the money I saved was less than half of my 20% down payment,” says Fedke. said Mr.

Kiffany Garner, a real estate agent for Fedke, said it may not be as bad as we think.

“These aren’t the best rates we’ve ever seen, and I think we were a little spoiled when rates were 3%,” Garner said.

Garner told Howard that when interest rates are low, buyers are making terrible decisions, such as forgoing inspections and paying the asking price.

Buyers have more power now that home sales are slowing due to rising interest rates.

“We were able to negotiate on closing costs.

She helped Fedke find a great home in Forsyth County, GA and find a lot in mortgages with 100% financing and Community Reinvestment Act mortgages without mortgage insurance. rice field.

“I’m very excited. I’m glad I’m doing this,” Fedke said.

Howard said considering a mortgage is more important the higher the interest rate. The same is true when buying a car.

Driver Howard said low inventory and high prices meant he was waiting to buy the car.

“My car is 14 years old and my husband wants me to buy a new used car,” said Betty Londergan.

“It’s not just about the price of the car.

New car sales are improving somewhat, Howard said. Varies by make and model, but we’re back to about half of our pre-pandemic inventories, and some cars are below the manufacturer’s suggested retail price.

But Howard said don’t buy a car if you absolutely don’t need it.

“Oh, I’m definitely holding mine,” said Londergan.

Whether it’s a car or a house, Howard told me to purchase that loan before attending a test drive or open house, especially if it’s a mortgage.

There are state and federal programs designed to help first-time buyers and people in certain income brackets.

Most programs require you to attend financial education classes or have the flexibility to choose where to purchase.

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