Will the upcoming election impact my interest rate?

Probably not much. While interest rates dropped to record lows in 2020, other factors such as the pandemic were largely responsible for that change. Elections themselves are generally not considered a major driver of interest rate movement.

There are several key factors that influence your interest rate. Your credit history matters a great deal, since low scores or a short credit history can result in a higher rate. The length and type of loan also play a role, as shorter loans may carry lower rates compared to longer ones, and adjustable-rate loans may start lower than fixed-rate options. Most land loans have a maximum term of 20 years. Finally, your down payment size and the current inflation environment both affect the rate you receive, with larger down payments and lower inflation generally leading to better rates.

High inflation tends to push interest rates higher. The Federal Reserve has raised interest rates as a way to slow economic activity and cool inflation. While those efforts have had some effect, additional cooling will likely be needed before interest rates come down significantly.

Yes. The larger the down payment you are able to make, the lower your interest rate is likely to be. This is one of the most direct ways a buyer can influence the rate they receive on a land loan.

You can reach out directly to the professionals at AFM Real Estate, who will help you assess your purchasing power and work with you to find a property that fits your goals and financial situation.