Will the upcoming election impact my interest rate?

Are you wondering how the upcoming election will impact interest rates? The short answer is probably not much. While interest rates dropped to record lows in 2020, other factors, like the pandemic, were at play.

What are the biggest factors that affect your interest rate? They are:

• Credit history: low scores or a short credit history can mean a higher interest rate.
• Loan length and type: Shorter loans could mean lower interest rates compared to longer loans, or adjustable-rate loans may be lower than fixed interest rates. Most land loans are a maximum of 20 years.
• Down payment: the larger the down payment, the lower the interest rate.
• Inflation: High inflation can mean high interest rates. The Fed has raised interest rates to slow the economy and, therefore, cool inflation. While this has been helpful, additional cooling will likely be required before interest rates come down.

If you want to know more about your purchasing power, reach out to the professionals at AFM Real Estate. We will help you realize your purchasing power and find your dream property!