The Cost of a Cup of Coffee vs. Your Monthly Mortgage
Are you curious about how an increase in home loan interest rates can affect the home buying process? In this video, we delve into an example mortgage scenario to provide a clearer mathematical picture of what your monthly payments could look like based on today's rates.
Let's consider a hypothetical situation: You're looking to purchase a $180,000 home with a 20% down payment, and you qualify for a 3.5% interest rate. In this case, your monthly mortgage payment would amount to $646.62. However, if you were to qualify at a 5.5% interest rate, your monthly mortgage payment would increase to $817.62. The difference between these two examples comes to $171.
To put it in perspective, on a daily basis, this amounts to only $5.70, roughly equivalent to the cost of a gourmet cup of coffee.
Numbers don't lie! By reviewing the mathematics behind how different interest rates can impact your loan, you'll gain a better understanding of how minimal the effect will be on your monthly payment. Join us to explore the fascinating world of interest rates and their role in your home buying journey.
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