INTEREST RATES ARE RISING! But what does that mean for you?

Say you’re only able to pay a $2000 a month mortgage. Then the price of the home broken down over 30 years (principal) + interest (Ex. 4%) + PMI (if applicable) HAS to equal $2000.

Say you’re looking at a house that’s $400K with a 4.5% interest rate. This payment will equate to $2000+ a month. So that home is now out of your budget.

However, if you were able to get that $400K home at a 4% interest rate or lower, then that house may fit into your monthly payment range!

Let's look at history:

All-time high-interest rate: 18.63% Oct 1981, 30-year mortgage rate

All time low-interest rate: 2.65% Jan 2022, 30-year mortgage rate

Now we’re working our way back up again. This is not meant to discourage you yet instead simply show you the power that interest rates have in changing your monthly payment on a home. No one can predict the future, unfortunately, but with the knowledge that interest rates are rising, if you’re able to purchase now, do it!

*Note* These numbers are simply examples! To get accurate and precise numbers for your specific situation, speak with a lender.

Video Credit:

Riley Anderson - E&V Advisor

+1 (509) 710-3164

RileyAnderson.evrealestate.com

Riley.Anderson@evrealestate.com

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