Spooked By Interest Rates? Listen Up!

An increase in rates will cost you more, yes, but it may not be as much as you think. Let’s look at an example.

A $300,000 loan with a 5% fixed rate comes out to roughly $1,610 a month. A $300,000 loan with a 6.5% fixed rate? $1,896 a month. That’s a difference of $286.

Mortgage rates are still low compared to the rates from the 1980’s. The 30-year mortgage rate was up to 17.60%. Now, that’s something to fear!

We are seeing more homes on the market compared to previous months and interest rates are expected to increase again before the end of the year. Translation: If you’re looking to purchase, now is the time.

If you have questions about your buying power, I’d love to be a resource to you!