How Interest Rates Can Effect Your Monthly Mortgage Payment
Ran a quick scenario on how one percentage point can effect your monthly mortgage payment. Using Texas Lending Mortgage Calculator I plugged a some very basic numbers for a 30 year fixed mortgage. The numbers used in a mortgage calculator was loan amount of $200,000. property taxes of $4640 and Home Owners Insurance of $1500 per year. These are my results.
- 3% the monthly payment was $1354.87
- 4% the monthly payment was $1466.50
- 5% the monthly payment was $1587.31
- 6% the monthly payment was $1710.77
Currently while writing this most home loans are around 3%. Which is historically low. No one is certain how long the Feds are going to keep interest rates low. Also the $200,000 home today will be more expensive in the near future. So if you have been considering purchasing a home. Now would be the optimal time.