What Happens to My Monthly Payment When Interest Rates Go Up?
I have been asked this question many times lately and found a great chart to help you visualize the impact of interest rate changes. This is top of mind for many prospective home buyers as interest rates creep up slowly from historical lows. In the example below, if you can make a monthly mortgage payment of $2,316, at 3.75% interest, you can qualify for a $500,000 loan. At 4.75%, you can qualify for a $450,000 loan and your monthly payment will be $2,347. Keep in mind that these figures are approximate, and may be affected by other factors such as credit scores, other liabilities, etc.