The national average on a 30-year fixed-rate mortgage dropped to 4.36 percent in August 2010 – lower than it’s been in the past half century.
Once rates start going up again, they can go up fast – creating a major import on monthly finances.
The Table below is based on a purchase of an $180,000 home
|
Interest Rate |
4.36% |
5.19% |
6% |
7% |
8% |
|
Monthy payment and interest |
$897 |
$987 |
$1080 |
$1198 |
$1321 |
|
Difference in monthly payments |
|
$90 |
$182 |
$300 |
$424 |
|
Total interest paid over the life of the loan |
$142,964 |
$174,424 |
$208,509 |
$251,116 |
$295,480 |
|
Interest saved over the life of the loan |
|
$32,460 |
$65,545 |
$108,152 |
$152,516 |
*Do you know that if interest goes up 1 percent, your monthly payment will go up 10 percent? What’s more likely? Home values dropping 10 percent or interest rates going up 1 percent?
Bankrate.com - Interest Rates, Mortgage Information
www.bankrate.com/
State of New York Mortgage Agency (SONYMA) - Home Ownership Opportunities of Low & Moderate Income Families
www.nyhomes.org/AboutUs/SONYMA/
