The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.
Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next 12 months.
How Will This Impact Your Mortgage Payment?Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.
According to CoreLogic’s latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year.
If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.
Bottom Line Even a small increase in interest rate can impact your family’s wealth. Let’s get together to evaluate your ability to purchase your dream home.
Heather Thurber is a Sonoma County native with a strong love for and knowledge of the local area. Running her family business for years, Paperbacks Unlimited, has given her extensive experience that she now brings to the real estate industry. She is highly skilled at working one-on-one with clients and will guide you through every step of the process, helping to make your path home as smooth and stress free as possible. A home purchase is often the largest purchase you will make in your life and Heather is 100% committed to providing excellent service and supporting you to make your best real estate decisions with confidence and clarity.