Interest rates greatly affect your monthly payment. For example, if you bought a $400,000 home in the 1970’s, you could expect to pay approximately $4,000 per month over 30 years. If you bought the same priced home in the 80’s, you could expect to pay approximately $5,000 per month. Compare to today’s rates, the same $400,000 home would cost $2,600 per month. To sum, you are paying more interest to the lender and less to your principal loan amount as rates increase. Take advantage of historically low interest rates today and move up to your dream home, pay more to principal and live comfortably in style. Call us today to get started searching for your dream home!
*The above monthly numbers do not include down payments and are used for comparison purposes only. Consult with your mortgage broker for a detailed payment analysis.