How Mortgage Interest Rates Affect Home Buying

Real Estate

  Most buyers put such a heavy concentration on low home prices and they sometimes can miss out of the real opportunity in today's real estate market which is low mortgage rates. Now is a great time to lock in a mortgage rate to offer you the peace of mind you deserve on your next home purchase.  

A 1 percent increase in the interest rate can equal an 11 percent increase in your monhtly mortgage payment and tens of thousand of additional interest paid over the life of your loan!

Below is a chart to help you understand the payment changes if mortgage rates increase.

                                  New Mortgage      New Mortgage                    Difference

                                                            with Higher Interest Rate    

Amount Borrowed       $200,000             $200,000                 

Interest Rate                4.17%                 5.17%                                 +1.00%

Loan Term (Months)    360                     360

Monthly Payment        $975.00               $1095                                  +$43,194.00

*This is an example for the purposes of comparaions only and does not represent today current rate

 

There is no better time like today to secure your new home.