Mortgage Rates Affect Monthly Payments More Than You Think

While most home buyers know that the sales price they agree to pay for their next home will impact how much their next monthly mortgage payment will be, I believe home buyers should pay as much, if not more, attention to their mortgage rate.


When a home sale price rises by one percent from $300,000 to $303,000, your monthly mortgage payment on the home will usually rise by one percent or less. But when mortgage rates for a $300,000 home climb by one percent from 4.5% to 5.5%, your monthly mortgage payment on the same home will spike by close to ten percent or more! If you’re not doing everything you can to qualify for the lowest home mortgage rate possible, you are leaving an incredible amount of money on the table.

Yes, wild home price fluctuations make sexy headlines.

See “Home Prices Drop 18% in October,” “Home Prices Falling Faster in Biggest US Cities,” “Spring Buying Boosts Home Prices in 13 US Cities,” and “US Home Values Post Largest Monthly Gain Since 2006.”

However, mortgage rates make low monthly payments. And I think low monthly payments are pretty sexy.

For more home buying tips, visit our Buy With Us page!

Source: Primary Mortgage Market Survey® data provided by Freddie Mac

The Hill Group
7975 N Hayden Rd C-100
Scottsdale, AZ 85258

© 2017 Coldwell Banker Real Estate LLC. A Realogy Company. All Rights Reserved. Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each Coldwell Banker Residential Brokerage Office Is Owned And Operated by NRT LLC. Coldwell Banker, the Coldwell Banker Logo and “We Never Stop Moving” are registered service marks owned by Coldwell Banker Real Estate LLC. All information contained herein is believed to be accurate, but is not guaranteed. Such information should be verified by the recipient.