Here are the numbers from the example explained in this video:
Example #1 - Increase in interest rate, same home price:
Home Price: $500,000 Down Payment: 3.5% Amortization: 30 years</>
Interest Rate #1: 5.0%, fixed, 30 years Monthly PI Payment: $2,590.16
Interest Rate #2: 5.5%, fixed, 30 years Monthly PI Payment: $2,739.58
You pay $149.42 MORE per month when the interest rate goes up 0.5% - that's equivalent to just more than 2 McCafe Lattes each day!
Example #2 - Increase in interest rate, decrease in home price:
Home Value Depreciation: 3% Depreciated Home Price: $500,000 * 0.03 = $485,000
Interest Rate: 5.5%, fixed, 30 years Monthly PI Payment: $2,657.39
That's $67.23 MORE per month than if you were to buy the home at $500,000 with a 5.0% interest rate - which is equivalent to just under one mcDafe Latte each day!