Bayfront homes are highly susceptible to fluctuations in the market. First-time home buyers or owners may find that the interest rates they first see are not at all the reality a few months or years from now.

Higher interest rates add up to greater costs, making it harder for some people to purchase the homes they want.

Between 2009 and 2015, mortgage interest rates varied by month, but they went from around 5.04% in 2009 to around 4.17% in 2013.

Sometimes, time can help interest rates lower, which, in turn, guarantees that a mortgage can go further for potential homeowners.

Even a fraction of a percent can add up over the course of a 15- or 30-year loan. For example, on the 4.17% interest rate, the interest on a $250,000 home would be $188,541.

At 5%, and with no down payment, you’ll pay around $233,139 in interest, according to www.mortgagecalculator.com.

What can potential buyers do to get the best interest rates for Bayfront homes?

Every lending institution decides what it will charge for mortgages. Adjustable-rate mortgages are impacted by the federal government’s annual adjustments.

Fixed-rate mortgages are less affected. So, to save money, people should aim to get a fixed-rate loan.

Good credit also makes a difference, so those with great credit can score a lower interest rate and get a higher loan than someone with lower credit.

If interest rates rise and nothing else about a situation changes, buyers still won’t be able to get as much money in a mortgage as they’d like.

That’s why lower interest rates are so important; With lower interest rates, people qualify for more money to get the homes they want most.