Here’s an example comparing monthly mortgage payments at two different interest rates with 5% down:
Let’s assume a $300,000 home purchase price and a 30-year fixed-rate mortgage.
At a 4% interest rate, with 5% down payment ($15,000), the loan amount would be $285,000. The estimated monthly principal and interest payment on this loan would be around $1,300.
However, if the interest rate was 7%, with the same 5% down payment, the monthly principal and interest payment would jump to approximately $1,700. That’s a difference of $400 per month!
The higher interest rate of 7% would cost an extra $48,000 in total interest paid over the full 30-year term compared to the 4% rate.
This example illustrates how small differences in mortgage rates can significantly impact the long-term costs of homeownership. Even 1% higher on the rate can mean hundreds more in monthly housing costs.
In today’s market, acting quickly could allow you to secure a lower rate before they continue rising. Waiting too long could reduce buying power once rates eventually stabilize at higher levels.
Consult mortgage lenders to explore your options and lock in favorable fixed rates. Preapproval can also strengthen offers in this competitive market. Don’t let mortgage rates derail your homebuying goals.
Always seek help and to talk with a mortgage profissional.
Saiid Zamani, Realtor
Keller Williams Realty
Cell: 484-597-6868
Office: 610-647-8300
Email: [email protected]
#RealEstate #HomeSweetHome #HouseHunting #DreamHome #PropertyInvestment #RealtorLife #HomeBuyers #HouseForSale #NewListing #LuxuryHomes #HomeSearch #FirstTimeHomeBuyer #RealEstateAgent #InvestmentProperty #HomeGoals #SellingHomes #HouseHunters #RealEstateGoals #HomeOwnership #BuyersMarket #SellerTips #HomeSale #RealEstateNews #PropertyMarket #MortgageLife #HomeSweetHome #RealEstateInvestor #HousingMarket #MoveInReady #HomeInspector #ClosingDay #HomeRenovation #RealEstatePhotography #OpenHouse #HomeDecor #InteriorDesign #HouseFlipping #RealEstateTech #Neighborhoods #RealEstateBlog #RealEstateLife #HomeDesign #HomeImprovement #Foreclosure #RealEstateTips #HouseGoals #RentingVsBuying #RealEstateMarketing #HomeStaging #PropertyLovers. West Chester, Paoli, Kennett Square, Chadds Ford, West Grove, Oxford, Avondale, Coatesville, Thorndale, Downingtown, Honey Brook, Elverson, Birdsboro, Douglassville, Pottstown, Gilbertsville, Boyertown, Bechtelsville, Royersford, Spring City, Limerick, Collegeville, Trappe, Phoenixville, Malvern, Paoli, Berwyn, Devon, Wayne, Radnor, Bryn Mawr, Haverford, Ardmore, Wynnewood, Narberth, Bala Cynwyd, Merion, Gladwyne, Lafayette Hill, Plymouth Meeting, Conshohocken, Bridgeport, King of Prussia, Trooper, Norristown, East Norriton, West Norriton, Audubon, Oaks, Skippack, Harleysville, Souderton, Telford, Quakertown, Perkasie, Sellersville, Hatfield, Lansdale, North Wales, Ambler, Fort Washington, Blue Bell, Gwynedd, Montgomeryville, Chalfont, Doylestown, Buckingham, New Hope, Newtown, Yardley, Morrisville, Levittown, Bensalem, Langhorne, Hulmeville, Penndel, Feasterville, Trevose, Southampton, Churchville, Richboro, Newtown, Holland, Ivyland, Warwick, Warminster,