Interest rates are on the rise so what will that mean if you are a Schaumburg home buyer? Obviously it will increase your payments but by how much? Interest rates are subject to many influences and factors including your own FICO score.
This chart will give you a payment based on every $1000 borrowed so you can see exactly what that means to your purchase plans. A rate increase also means the lessening of your purchase power because you are pre-approved based on a payment amount that you can afford per month.
So in case you don't want to locate your calculator, I'll do some quick math for you. Based on a purchase price of $150,000 (no taxes, insurance or PMI, 30 year) your payments will be:
4.25% = $736.50
4.5% = $759.00
4.75% = $781.50
Based on the above example, buyers would see an $66 increase per month in their payments.
Time to get planning and adopt a game strategy if you want to get a home this year! I can help you with all the details and get you into a new home by the end of the year!
Things to consider when purchasing a home
Budget Worksheet
Courtesy of KCM Blog
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