Do not ask me to predict where mortgage rates are heading and when, I your REALTOR at www.BuckheadAtlantaRealty.com am also a professional historian and therefore not "allowed" to violate this code of honor. What I can tell you that mortgage rates will impact your purchasing power.
According to www.KeepingCurrentMatters.com, they say the following:
How Will Increased Rates Impact Your Mortgage?
Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in the interest rate can increase your monthly mortgage payment significantly.
Examples for a $200K, $300K, $400K, $500K, $600K, $700K, $800K $900K and $1,000,000 are:
Payments for 3.75% ------- 4.25%-------4.50%-------5.00%
$200,000 $926 $984 $1,013 $1,074
$300,000 $1,389 $1,478 $1,520 $1,610
$400,000 $1,852 $1,968 $2,026 $2,148
$500,000 $2,316 $2,460 $2,533 $2,648
$600,000 $2,779 $2,952 $3,040 $3,221
$700,000 $3,242 $3,444 $3,547 $3,757
$800,000 $3,705 $3,936 $4,053 $4,295
$900,000 $4,168 $4,427 $4,560 $4,831
$1,000,000 $4,631 $4,919 $5,067 $5,368
One conclusion from these numbers is that you have to to tighten your budget or sacrafice on luxuries that are being taken for granted today.
The experts predict that home prices will appreciate by 4.4% over the course of 2015. If interest rates rise and home prices increase as predicted, families will wind up paying considerably more for a home.
Bottom Line
Even a small increase in interest rate can impact your family's wealth. Meet with a local real estate agent, www.BuckheadAtlantaRealty.com to evaluate your ability to purchase your dream home.
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