What does an increase in interest rates cost?
The following is a table showing the cost per $1000 financed at various interest rates - principal and interest only.
|
Interest Rate |
Monthly Payment per $1000 financed - 30 Year Loan |
Monthly Payment per $1000 financed - 15 Year Loan |
|
4.5 |
$5.08 |
$7.65 |
|
4.75 |
$5.22 |
$7.78 |
|
5.0 |
$5.37 |
$7.91 |
|
5.25 |
$5.53 |
$8.04 |
|
5.5 |
$5.69 |
$8.18 |
|
5.75 |
$5.84 |
$8.31 |
|
6.0 |
$6.00 |
$8.44 |
On a $200,000 30 year loan, your payment will increase roughly $30 per month for every ¼ % rise in interest rate. On a 15 year loan the increase will be approximately $26. If you are thinking about buying a new home in the Birmingham or Shelby County area, don't delay. Interest rates are going up and you may qualify for tax credits up to $8000. Call me for details.
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