As rates rise, affordability dwindles. If you want more home for the same monthly payment, acting before rate rise further may be a direct path to success.
Each example here shows the principal and interest payment for a 30-year, fixed-rate loan.
1) Loan of $200,000 – Interest rate: 4.00% / 4.25% APR – Payment = $955
2) Loan of $180,000 – Interest rate: 5.00% / 5.27% APR – Payment = $966
3) Loan of $160,000 – Interest rate of 6.00% / 6.29% APR – Payment = $959
It’s pretty amazing that a rate increase of just 2% can impact affordability by as much as $40,000. Rates have been artificially low for some time now due to Fed intervention. As this stimulus is removed, the usual result is the rates to rise. Rates have already started rising just in expectation of a change in Feb policy.
Act NOW to buy the house you desire without the risk of losing your opportunity to lock-in these amazing low rates. I can help you or those you know get a low interest rate loan before further increases go into effect.