As we live our lives it seems that change is the only constant in them. There was a lot of speculation last January that interest rates would increase right beside home prices. And while it is true that home prices have increased in most U.S. markets over the last five years, mortgage rates today are lower that they were a year ago.
So let’s look at some numbers. If current interest rates were to increase by 1 percent over the next year and homes kept appreciating to 6 percent during the same time, a $250,000 home would increase in value by $15,000 and the monthly payment would be $211.53 more each month for the length of the mortgage. This increase would add up to $17,769 over the next seven years. CONTINUE READING--->