Friday, July 5, 2013

How much will rising mortgage rates cost you?

Mortgage rates are rising. An average 30-year fixed rate carried a 3.35% interest rate nine months ago. Today, the same loan will cost you 4.46%.  What does the rise in rates do to a mortgage payment?

Here is a chart of the average mortgage interest rates going back to 1980 to see how much monthly payments would be on a 30-year fixed-rate $250,000 loan. 
Source: Federal Reserve interest rate average for the year

If you take out a $250,000 mortgage with a 30-year, fixed-rate loan today, monthly mortgage payment will be $1,261, up from $1,145 a year ago, and down from $2,200 in 1990 and $3,489 in 1980.

Thank goodness we're probably not going back to 1981 interest rates anytime soon!  We have great rates today, call me to find out what you qualify for  and what your payments will be on the home you would like to purchase.  :)

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