The last couple of weeks have seen mortgage interest rates increase about .5%. As a home buyer, how does this affect you? Here are a few scenarios:

A loan amount of $250,000:

  1. Buyers can expect to pay right around $70 per month more for the same home a month ago and that $70 more per month equates to around $14,000 in purchasing power. If your maximum loan amount was $250,000 a month ago today it would be more like $236,000 today.

A loan amount of $350,000:

  1. Buyers can expect to pay right around $100 per month more for the same home a month ago and that $100 more per month equates to around $20,000 in purchasing power. If your maximum loan amount was $350,000 a month ago today it would be more like $330,000 today.

A loan amount of $450,000:

  1. Buyers can expect to pay right around $135 per month more for the same home a month ago and that $135 more per month equates to approx. $26,000 in purchasing power. If your maximum loan amount was $350,000 a month ago today it would be more like $424,000 today.

So…if you are thinking of Buying, it may be time for you to think about getting into a new home – it is not too likely that these rates will head downwards in the future!…