04/19/2018
Many people are concerned that interest rates are slowly rising. All indications are that they will continue to slowly rise. But how much does an interest rate really affect your mortgage payment? Here's a look at how much your payment will change when rates go up.
Mortgage interest rates change in increments of 1/8th of a percentage point, or 0.125%. For every 1/8th of a point that rates go up, here's how much your payment would change.
• For a $200,000 mortgage, the payment would change by about $15 per month.
• For a $300,000 mortgage, the payment would change by about $23 per month.
• For a $400,000 mortgage, the payment would change by about $30 per month.
• For a $500,000 mortgage, the payment would change by about $38 per month.
Regardless of where rates are when it comes time for you to lock in your rate, you can always pay points to get a lower rate. That often makes a lot of sense to do.
If you have questions on this or how it affects the real estate here in Utah, shoot me a message.