First, consider interest rates. An indicative 30-year fixed rate today is 4.375%. For every $1,000 borrowed, you’ll pay principal and interest of $4.99 monthly. At 5%, that figure increases to $5.36. At 6%, it jumps to $6.00.
A $200,000 home with a 20% down payment ($160,000 loan) carries with it a Principal and Interest payment of $798.85 at 4.375%. At 6.00%, that figure jumps by $160 to $959.28 a month, or nearly $2,000 a year in additional housing expense. That figure will grow as home prices begin a modest improvement upward in the future. A 5% increase in home prices translates to $500 a year in additional expense.
Mortgage rates and home prices also directly affect:
Thank you to Great Midwest Bank for contributing this article.
Buying a home now can make a lot of sense. Do you have a good job and good credit? Some money for a downpayment? Those are things anyone considering buying a home should have, no matter when they are buying. Talk to a lender to see what you can afford and get searching for Wisconsin real estate at firstweber.com. We hope you’re able to get into a great home that’s just right for you. First Weber offers buyer representation if you need it.
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