Rates are on the rise, recently reaching 2015 highs! Here’s a look at what that could mean to you:
If 30-year mortgage rates increase by just a quarter percent to 4.25%, your monthly payment increases by 3%, not a huge deal, but take a look at this: Half a percent to 4.5% would increase payments by 6.13% and that may start moving you from, “I really love this house” to “I wish I could still afford that house!” With a 1% increase, from 4% to 5%, your monthly payment goes up by 12.44%. Needless to say, in order to qualify your income would have to increase proportionally.
Call your loan officer today and talk about LOCKING YOUR RATE!