How much do interest rates affect your payment?
I get asked from buyers all the time, “how much will raising or lowering interests rates effect my payment?” My initial response is, “A LOT”, and then we break down some numbers to illustrate.
If a typical purchase is $500,000 with an average loan amount of $400,000, by interests rates increasing 1% on a 30 year loan, you will have added approximately $88,200 in interest payments over the life of the loan!! The great news is, if rates decrease by 1% you will have the opposite effect, as this will now become additional money in your pocket over the life of the loan.
So then the next question comes, “what if rates don’t come down”? And my response is, “it doesn’t matter”… Now, here’s why I say that…
We have a proprietary method, that when you work with us, we will show you how to shave upwards of 1% (depends upon loan size) off your current interest rate and have it not cost you a dime!
If this is a program you think you could benefit from, give us a call and I would be happy to share with you how we have successfully been able to achieve this for countess buyers just like you.
Also, feel free to click the link below and it will take you directly to our mortgage calculator so you can see how much a higher or lower interest rate could effect your monthly payment.