What a higher rate means for your bottom line
The monthly payment on a $200,000, 30-year fixed-rate mortgage at 3.35% (what it averaged in early May) is $881. When the rate goes up to 4.46% (what it averaged in late June), the monthly payment is $1,009, according to calculations from Truliaâs chief economist, Jed Kolko.
Or consider this rule of thumb: For every $100,000 borrowed, a percentage point increase in rate means an additional $83 a month in your monthly mortgage payment, said David Zugheri, executive vice president at Envoy Mortgage in Houston.
Is that enough to stop someone from buying a home? Probably not. But it will likely make someone consider to purchase that new home sooner then later, he said.
Even a smaller jump can be felt in a borrowerâs monthly budget. If you have questions, give me a call or email. (602) 432-3557 or email@example.com
Author:Joshua Smith Phone: 623-703-7445 Dated: July 24th 2013 Views: 779 About Joshua: ...
View our latest blog posts in your RSS reader. Click here to access.
We are a full service real estate team that believes in delivering world class service to our clients. We will do everything possible to ensure our clients real estate goals are met. Joshua Smith Real Estate Group has been rated the 30th top Real Estate Team in America by The Wall Street Journal and the only way to achieve this type of success is by providing extraordinary service to our clients. We look forward to helping you and your family accomplish your real estate goals!