The difference that rates can make in your payment is nothing to sneeze at. Read on and you’ll see what we mean.
Here’s a quick look at just about every mortgage level to see how a 1% increase in rate from today’s low 4s to the forecasted low 5s of next summer. To be clear, we’re just showing the effects your principal and interest payment.
It’s not uncommon for someone to have a $500, 000 mortgage in San Diego. By waiting a year (according to the rate predictions being made by Freddie Mac) and refinancing or purchasing next summer, you will have a payment that is $410 MORE per month…that’s just short of $5000 more a year.
Here’s the really scary number…over the course of a 30 year term, it’s $147,704.40!
Freddie Mac: http://www.freddiemac.com/finance/pdf/June_2014_public_outlook.pdf
Home Price Expectation Survey: https://pulsenomics.com/Q2_2014_HPE_Survey.php
