In today’s market, the demand for housing remains very strong, and property values continue to appreciate at a surprisingly fast pace. A home purchase is a big decision, and potential buyers have many factors to consider on the path to homeownership. However, if home mortgage rates increase while you are still deciding, so too will the total monthly payment required to finance and own a home. Here’s a look at how the cost of waiting can add up if mortgage rates rise:
|$650,000 Home PriceRateAPR1Monthly Payment2Increase per MonthIncrease Annually3.50%3.530%$3,314.83N/AN/A4.00%4.031%$3,480.80$165.97$1,991.644.50%4.532%$3,652.03$171.23$2,054.76Rates going from 3.50% to 4.50% will increase your payment by $4,064.40 per year,or $20,232.00 after five years!Don’t let the chance of rising rates leave you with much less buying power than you have today. Give me a call today to talk more about your financial plans, the impact of waiting, and if now is the right time to buy or refinance.|
1 Annual Percentage Rate (APR) current as of 09/30/2021 is subject to change daily without notice and assumes a minimum FICO score of 620, no HOA fees, and a maximum debt-to-income ratio of 45% on a single-family residence.
2 The default payment calculations above are based on a 10% down payment, a conventional 30 year fixed rate amortization and national average expenses for property taxes, and insurance. The rates shown here are arbitrary and do not constitute an advertisement or offer to lend.
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