Uncategorized April 1, 2013

How Would a 1.0% Interest Rate Increase Affect Your Buying Power? How about 2.0%?

 

Today's interest rates are at historically low levels, which increases the buying power of all buyers (except all cash).  But what if rates were to increase, say 1.0%?  What if it were 2.0%?

How would that affect how much house you could buy?  Less, of course, but how much less?

Even a 2.0% increase would leave rates around 5.5% and it wasn't too long ago that any mortgage rate below 6.0% was considered a prime deal. 

My office's Windermere Mortgage Branch Manager, Tanya Elder, has provided some examples illustrating what happens to your buying power at different prices as rates increase.  Click here