WHAT WILL HAPPEN WHEN MORTGAGE RATES INCREASE

There has been much talk about the mortgage interest rates going up recently.

Here is “The California Association of Realtors” housing affordability index graph, which demonstrates the difference between a 4.5% rate and a 6.5% rate on a mortgage.

This graph shows the median purchase price of $515,950 with 20% down.

The increase in principal and interest payment is a little over $500. a month. This monthly payment increase is substantially the same for a home loan of $400,00 or more.

Contact me – Mary Ann Edwards, Re/Max College Park – if you would like more info.