Have you been wondering how the change in interest rates will effect your monthly payment if you were to buy a house right now? We contacted Lonnie Knob at Guaranteed Rate to find out for you. Lonnie stated that rates have increased on average approximately .5% since November, swinging the pendulum from a long standing “declining” or “stable” rate environment to one forecasting mortgage rates on the rise.
What does this mean for you?
Example: If you obtained a home loan for $300,000.00 and took into account the following factors (for informational use only and not a commitment to lend):
760+ credit score
30 Year Fixed Loan
Here’s what you could expect to see in regards to your payment difference with a .5% higher rate*:
3.5% (3.555% APR)– $1,347/month (principal and interest)
4% (4.058% APR) – $1,432/month (principal and interest)
The monthly payment increases by $85/month, paid to interest
The yearly difference would be $1,020/year higher, paid to interest
The higher rate equates to approximately $30,600 over the life of loan (30 years) in increased interest payments!
With interest rates and property values continuing to rise, it’s still a great time to lock in a historically low rate to improve the overall affordability of your home purchase. Click here to use the Mortgage Calculator to estimate your mortgage payments quickly and easily. View matching homes in your price range at MavesGroup.com
* sample payment does not include taxes and insurance, actual obligation would be higher
Vice President of Mortgage Lending
o: (970) 446-7893
c: (970) 270-2584
f: (773) 328-1900
480 W Park Dr, Ste 203,
Grand Junction, CO 81505