Hey, everyone! There has been a lot of talk about interest rates lately and how they affect our market. In the past 30-45 days, interest rates have crept up. This has created a sense of urgency for many buyers; they want to get the most house for their money.
Today, I wanted to tell you more about how increasing rates affect your monthly mortgage payment. If you borrow $200,000 from the bank at a 4 percent interest rate, your monthly payment for a 30 year fixed rate loan is $954.
If rates rise to 5 percent, that same loan will cost you $1,073 a month. And if interest rates increase to 6 percent, your payment will be $1,199. That’s a $245 difference per month.
The good news is it is still a great time to buy; buying is cheaper than renting.
Buy that new home now before rates increase and you lose buying power. Give me a call at (912) 272-3463.