If you are looking to buy a home, and are planning to finance the purchase, it is important that you’re educated on the current state of mortgage rates. Although mortgage interest rates are still considerably low in comparison to historical data (18.63% in 1981 for a 30-year fixed-rate*), they are still the highest they’ve been in the last 7 years and are forecasted to continue to climb. When mortgage interest rates increase, it not only decreases the value of your buying power, it also adds significant costs to your monthly payments. To further understand, see below the printable table created from data provided by HomeServices Lending to easily showcase the impact event the slightest increase can have on your payments.
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*Source: Value Penguin