Rates are on the Rise
Let's compare interest rates rising over the next year:
- Today's approximate 30-year FHA interest rates are floating around 4.5 %
- That equates to a monthly payment of around$1520 /month.
- Over the 30 year life span of the 4.5% interest loan, you will pay a total of $547,220 to payoff your $300,000 mortgage.
- Interest rates are due to rise over the next year. If they rise to 5.5% you will see the following increase in cost on the same loan.
- Monthly payment will increase from $1520/month to $1723/month
- Over the 30 year lifespan of the loan will rise from $547,220 to $613,212.
Of course this is a hypothetical situation and I'm not trying to force you into moving before you're ready. I just want you to have enough information to make a good decision. Please let me know if you have any questions.