Refinance…Rates Are Headed North

Home loan interest rates have risen over the last week.  We have enjoyed rates in the  “3’s” for the last several   months.  Today, however, we are nudging up against 4.0%.  The impact on home loan payments, and qualifying is really surprising! Here, for example, is the affect on a $300,000 fixed rate, fully amortized loan that went up .5% from 3.5 to 4.0%:

4.0%                                       $1,432.25/ mth
3.5%                                      – 1,347.13/ mth
Increase:                                    $85.12 every month
Increase in income to qualify:  $224/ mth

4.5%                                      $1,520.06/ mth
3.5%                                      – 1,347.13/ mth
Increase:                                 $172.93 every month
Increase in income to qualify:     $455/ mth

So, will the interest rates go up further?  How much?  How fast?  What do you think?  This is not a time to ponder.  It’s a time to pursue! Why not text or email me your current: Loan Balance, Principle & Interest payment, and interest rate.  Or, you could just email me a copy of your current home loan statement.  I will send back to you how much a refinance will save you each month.

(APR for 3.5%: 3.875%, 4.0%s APR: 4.374%, APR for 4.5%: 4.873%)

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