If you are considering purchasing a home in West Virginia, this is a good time. Interest rates are still favorable for residents of the Mountain State, and according to the experts, West Virginia mortgage rates are expected to remain favorable throughout 2016.
How favorable? Well, mortgage interest rates have been exceptionally low for several years now. As a matter of fact, interest rates have been under 5 percent for around five years, even dipping down into the low 3 percent range for a period of time. Even now, interest rates are under four percent.
So how are interest rates going to fare for the rest of 2016? We have listed the predictions for West Virginia mortgage rates below
April 2016 30-year mortgage interest rates:
- Beginning of April: 3.58%.
- End of the month: 3.69%
- Maximum rate: 3.69%
- Minimum: 3.47%
- Average mortgage rate: 3.64%
May 2016 30-year mortgage interest rates:
- Beginning of May:Â 3.69%
- End of the month :3.59%
- Maximum rate: 3.8%
- Minimum: 3.58%
- Average mortgage rate: 3.64%
June, 2016 30-year mortgage interest rates:
- Â Beginning of June: 3.59%.
- End of the month: 3.61%
- Maximum rate: 3.7%
- Minimum rate: 3.48%
- Average mortgage rate: 3.6%
July, 2016 30-year mortgage interest rates:
- Beginning of July:Â 3.61%
- End of the month: 3.72%
- Maximum rate: 3.72%
- Minimum rate: 3.5%
- Average mortgage rate: 3.67%
August, 2016 30-year mortgage interest rates:
- Beginning of August: 3.72%
- End of the month: 3.76%
- Maximum rate: 3.83%
- Minimum rate: 3.61%
- Average mortgage rate: 3.74%
September, 2016Â 30-year mortgage rate forecast:
- Beginning of September: 3.76%
- End of the month: 3.65%
- Maximum rate: 3.87%
- Minimum rate: 3.65%
- Average mortgage rate:Â 3.71%
October, 2016Â 30-year mortgage rate forecast:
- Beginning of October: 3.65%
- End of the month: 3.54%
- Maximum rate: 3.76%
- Minimum rate: 3.54%
- Average mortgage rate: 3.6%
November 30-year mortgage rate forecast:
- Beginning of November: 3.54%
- End of the month: 3.55%
- Maximum rate: 3.65%
- Minimum: 3.43%
- Average mortgage rate: 3.55%
December , 2016Â 30-year mortgage rate forecast:
- Beginning of December: 3.55%
- End of the month: 3.66%
- Maximum rate: 3.66%
- Minimum rate: 3.44%
- Average mortgage rate: 3.61%
As you can see, the mortgage interest rates in West Virginia are expected to remain on the low side. So, if you are working to get your down payment together or clean up your credit, you have plenty of time to do so and still lock in a decent 30-year rate. For those who are considering a 15-year mortgage, rates are expected to remain under 3 percent until August of 2016 where rates will peak at 3.04%, then dip back below 3 percent for the rest of the year.
Different Parts of the State – Different Rates
Interest rates are guided by several factors such as unemployment and inflation. These numbers are adjusted on a national level, but then locally, lenders can adjust interest rates to match the local financial climate. This means that mortgage rates in West Virginia are different than in Connecticut. But that also means that mortgage interest rates in one part of the state can vary from another part of the state.
Mortgage Rates and Housing Prices
It is easy to understand how a mortgage rate can affect the amount of house you can afford. The higher the mortgage rate, the more a mortgage costs and the higher your payments are. A high mortgage rate can mean you have to buy a smaller house, less property or delay buying altogether. If you are deciding where in the state you want to live, mortgage rates can play a part in that decision as well. Housing rates vary throughout the state. Â This means a three-bedroom 1.5-bath home in Charleston might have a different price in Fairmont. Here are some examples:
- A four-bedroom, three bathroom home with a two-car garage in Valley Grove WV: Â $190,000
- A four-bedroom, three bathroom home with a two-car garage in Weirton, WV: $162,500
- A four bedroom, three bathroom home with a two-car garage in Harper’s Ferry, WV: $239,900
- A four bedroom, three bathroom home with a two-car garage in Hedgesville, WV: $329,000
All of these homes are between 2,200 and 2,600 square feet and have roughly the same amenities, and yet prices range from $190,000 to $329,000. That means a huge difference in mortgage payments.
For example, let’s say you’ve fallen in love with Harper’s Ferry.  After plunking down a 20 percent down payment, attaining a low 3.5 percent interest rate and maintaining a credit score over 740, you’d have a 30-year mortgage of $858. If mortgage interest rates tip 4 percent, your mortgage payment would increase to $923. Half a percentage point could mean a $65 increase in your mortgage payment. Now let’s say you want the house in Hedgesville, but you only have 10 percent for a down payment:
329,000 – 10% ($39,000) = 296,100. Mortgage payment for a 30-year fixed mortgage at 3.5 percent: $1330. If the interest rate increases to 4 percent, the payment increases to $1,414.
The takeaway: while West Virginia mortgage rates are still low, having a good credit rating and a decent down payment is also important. having wiggle room with your down payment can mitigate some interest rate issues and a decent credit score will ensure you’ll always qualify for the lowest interest rate available. Although it is not anticipated that interest rates will rise above five percent anytime soon, being prepared for any eventuality regarding the real estate market is a good idea. By doing this, you’ll be able to find a home anywhere in the Mountain State you want to call home.
2 Point Highlight
If you are considering purchasing a home in West Virginia, this is a good time.
The higher the mortgage rate, the more a mortgage costs and the higher your payments are.
