Did you know that even a 1 percent increase in mortgage rates can make a big difference in a home owner’s decision-making process? A 1 percent increase in interest rates generally equates to a 10 percent reduction in purchasing power. In practical terms, that means a family looking to keep their mortgage payment below, say, $1,500 a month will need to lower the maximum price they can pay for a house from $300,000 to $270,000 if interest rates go up one percentage point. If youre looking to move, now is the time before rates go up beginning 2015. While 4.25% is still an amazing interest rate, sellers may not be willing to sell the home you wish to buy.
Posted on: Sat, 26 Jul 2014 12:55:45 +0000
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