Mortgage Interest Rates
What you pay on your home mortgage interest rate has a direct impact on your monthly payment; the higher the rate, the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.
Below is a chart created using
Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next year. The difference between a 3.5 mortgage rate and a 5.2 mortgage rate is $100 per month for every $100,000 of mortgage for the 360 payment life of the loan!
How Will This Impact Your Mortgage Payment?
Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in mortgage rate can increase your monthly mortgage payment significantly.
According to
CoreLogic’s latest
Home Price Index, national home prices have appreciated 6.2% from this time last year and are predicted to be 5.1% higher next year.
If both the predictions of home price and mortgage rate increases become a reality, families would wind up paying considerably more for their next homes.
Bottom Line
Even a
small increase in mortgage rate can impact your family’s wealth, so don’t wait until next year! Let’s get together to evaluate your ability to purchase your dream home now.
