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The 5th eGuide in our series. Wondering how interest rates have an impact on your monthly mortgage payment? This eGuide will explain how rates and timing financially impact your future payments.
Citation preview
Impact of Increasing
INTEREST
RATES
"One thing seems certain: we are not likely to see average
30-year fixed mortgage rates return to the historic lows
experienced in 2012."
Freddie Mac
1/2013 4/2014
Freddie Mac
Projected Rates April 2014 – 2015 4Q
Mortgage.LHFS.com/NickPurchio
Date Mortgage Interest Rate* P&I**
Today $250,000 4.41 $1,253.38
End of 2015 $270,000 5.7 $1,567.08
*Average Commitment Rate per Freddie Mac **Principal and Interest Payment
$313.70Difference in Monthly Payment
Date MortgageInterest Rate*
P&I**
Today $250,000 4.41 $1,253.38
End of 2015 $270,000 5.7 $1,567.08
$313.70Difference in Monthly Payment
Monthly Annually Over 30 Years
$313.70 $3,764.40 $112,932
Decade Average Rate Payment
1970s 8.86% $1,589
1980s 12.7% $2,166
1990s 8.12% $1,484
2000s 6.29% $1,237
2014 YTD 4.36% $997The average 30-year fixed mortgage rates and the approximate payment for a $200,000 mortgage. Payments are principal & interest only, based on a $200,000 fully amortizing mortgage.All terms are assumed to be 30 years.
Freddie Mac 3/2014
Historic Mortgage Rates by Decade
Mortgage.LHFS.com/NickPurchio
6.00 $ 1,199 $ 1,169 $ 1,139 $ 1,109 $ 1,079
5.75 $ 1,167 $ 1,138 $ 1,109 $ 1,080 $ 1,050
5.50 $ 1,136 $ 1,107 $ 1,079 $ 1,050 $ 1,022
5.25 $ 1,104 $ 1,077 $ 1,049 $ 1,022 $ 994
5.00 $ 1,074 $ 1,047 $ 1,020 $ 993 $ 966
4.75 $ 1,043 $ 1,017 $ 991 $ 965 $ 939
4.50 $ 1,013 $ 988 $ 963 $ 937 $ 912
$ 200,000 $ 195,000 $ 190,000 $ 185,000 $ 180,000
-2.5% -5% -7.5% -10%
Buyer’s Purchasing PowerR
AT
E
Principal and Interest Payments rounded to the nearest dollar amount.
Mortgage.LHFS.com/NickPurchio
6.00 $ 2,398 $ 2,338 $ 2,278 $ 2,218 $ 2,158
5.75 $ 2,334 $ 2,276 $ 2,218 $ 2,160 $ 2,100
5.50 $ 2,272 $ 2,214 $ 2,158 $ 2,100 $ 2,044
5.25 $ 2,208 $ 2,154 $ 2,098 $ 2,044 $ 1,988
5.00 $ 2,148 $ 2,094 $ 2,040 $ 1,986 $ 1,932
4.75 $ 2,086 $ 2,034 $ 1,982 $ 1,930 $ 1,878
4.50 $ 2,026 $ 1,976 $ 1,926 $ 1,874 $ 1,824
$ 400,000 $ 390,000 $ 380,000 $ 370,000 $ 360,000
-2.5% -5% -7.5% -10%
RA
TE
Principal and Interest Payments rounded to the nearest dollar amount.
Buyer’s Purchasing Power
Mortgage.LHFS.com/NickPurchio
6.00 $ 3,597 $ 3,507 $ 3,417 $ 3,328 $ 3,237
5.75 $ 3,501 $ 3,414 $ 3,326 $ 3,239 $ 3,151
5.50 $ 3,407 $ 3,322 $ 3,236 $ 3,151 $ 3,066
5.25 $ 3,313 $ 3,230 $ 3,148 $ 3,065 $ 2,982
5.00 $ 3,221 $ 3,140 $ 3,060 $ 2,979 $ 2,899
4.75 $ 3,130 $ 3,052 $ 2,973 $ 2,895 $ 2,817
4.50 $ 3,040 $ 2,964 $ 2,888 $ 2,812 $ 2,736
$ 600,000 $ 585,000 $ 570,000 $ 555,000 $ 540,000
-2.5% -5% -7.5% -10%
RA
TE
Principal and Interest Payments rounded to the nearest dollar amount.
Buyer’s Purchasing Power
Mortgage.LHFS.com/NickPurchio
6.00 $ 4,796 $ 4,676 $ 4,557 $ 4,437 $ 4,317
5.75 $ 4,669 $ 4,552 $ 4,435 $ 4,318 $ 4,201
5.50 $ 4,542 $ 4,429 $ 4,315 $ 4,202 $ 4,088
5.25 $ 4,418 $ 4,307 $ 4,197 $ 4,086 $ 3,976
5.00 $ 4,295 $ 4,187 $ 4,080 $ 3,972 $ 3,865
4.75 $ 4,173 $ 4,069 $ 3,965 $ 3,860 $ 3,756
4.50 $ 4,053 $ 3,952 $ 3,851 $ 3,749 $ 3,648
$ 800,000 $ 780,000 $ 760,000 $ 740,000 $ 720,000
-2.5% -5% -7.5% -10%
RA
TE
Principal and Interest Payments rounded to the nearest dollar amount.
Buyer’s Purchasing Power
Mortgage.LHFS.com/NickPurchio
6.00 $ 5,996 $ 5,846 $ 5,696 $ 5,546 $ 5,396
5.75 $ 5,836 $ 5,690 $ 5,544 $ 5,398 $ 5,252
5.50 $ 5,678 $ 5,536 $ 5,394 $ 5,252 $ 5,110
5.25 $ 5,522 $ 5,384 $ 5,246 $ 5,108 $ 4,970
5.00 $ 5,368 $ 5,234 $ 5,100 $ 4,966 $ 4,831
4.75 $ 5,216 $ 5,086 $ 4,956 $ 4,825 $ 4,695
4.50 $ 5,067 $ 4,940 $ 4,814 $ 4,687 $ 4,560
$ 1,000,000 $ 975,000 $ 950,000 $ 925,000 $ 900,000
-2.5% -5% -7.5% -10%
RA
TE
Principal and Interest Payments rounded to the nearest dollar amount.
Buyer’s Purchasing Power
Mortgage.LHFS.com/NickPurchio
CONTACT ME TO TALK MORE
Nick Purchio
Land Home Financial Services
Mortgage.LHFS.com/NickPurchio
925-708-8527
NMLS/CA-DBO #1098212
PurchioMortgageHouse.BlogSpot.com
I’m sure you have questions and concerns…
I would love to talk with you more about what you read here, and help you on the path to
buying a home. My contact information is below. I look forward to hearing from you…