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Stanberry Stories Blog

Friday, April 13, 2018   /   by Jenny Carroll

How Do Rising Interest Rates Really Affect My Monthly Payment?

With interest rates on the rise, buyers have been asking, "How do higher interest rates really affect my monthly payment?" The answer might surprise you and it's not as much as you would think.
In this example, we're using a buyer with a 760 credit score putting 10% down on a $300,000 sales price using a 30-year fixed-rate mortgage. The monthly principal and interest payment change is only $18.90 a month per .125% rise in interest rate.

Today's rates are still near half their historical average of over 8%. That provides continued opportunity to lock in very low rates, even if they are higher than in recent history. The days of 4% interest rates are behind us, for now, so maximizing your down payment is a vital component to keeping your payment as low as possible. This is why having an experienced mortgage lender on your team is key to your home buying success. They can help you organize your finances, such as paying down. ...

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