When someone is just starting to look at homes, they want to know how much they can afford. In our ever changing market, that is a GOOD question.
We have already talked about if rates go up 1% and house prices go down 10%, you won't save a penny. Crazy, but true.
But let's look at different interest rates on a 30 year loan, just principal and interest. I am going to give you 3 different rates with three different house prices, same mortgage payment.
4.8%(rate) $1,049 (payment P&I) = 200,000 (Price)
5.8%(rate) $1,049 (payment P&I) = 178,837 (Price)
6.8%(rate) $1,049 (payment p&I) = 160,959 (Price)
In our area, 40k makes a enourmous difference in this price range. Want to know more, call Jim Belote at 395-LOAN. Please let him know Suzi sent you.