What Does The Hike In Rates Do To My Payment?

So, with the news running rampant about rates jumping up and mortgage lenders getting slammed with calls, I thought I'd just give you a quickie example of what the increase in rates does to your monthly mortgage payment. Not discussing how much more it will cost over the life of the loan as most buyers are only focused on their monthly payment.

Two scenarios, both with 20% down conventional financing:

1) Home price $800,000
Principal & Interest Payment @ 3.5% = $2873.89
Principal & Interest Payment @ 4.5% = $3242.79
Monthly difference = $368.90

2) Home price $ 350,000
Principal & Interest Payment @ 3.5% = $1257.33
Principal & Interest Payment @ 4.5% = $1418.72
Monthly difference = $161.39

Both calculate out to just under a 9% increase in your monthly payment. This may help you regardless of your home purchase price.

There are plenty of mortgage calculators on-line you can find, 

I just wanted to make it pretty simple for you to see what the difference will do.