If you need assistance, please call 269-350-5514

How Does Interest Affect Price Of House | Veenstra Team powered by eXp Realty Blog

Monday, December 12, 2016   /   by David Veenstra

How does a higher interest rate affect your mortgage payment? -

Kalamazoo real estate: Since the election, interest  rates have started going up.  Higher interest rates will have a direct effect on the cost that home buyers will pay for housing.  There is a rule of thumb that a ½% change in interest is approximately equal to 5% change in price. Stated another way,  if the interest rate goes up by ½%  the impact on your budget is almost the same as having to pay 5% more on the price of the house.  That means the monthly payment for a $250,000 house that you can purchase at today's interest rates would cost you the same as if you are buying that same house for $262,500 once the interest rates go up 5%. 
If you wait until interest rates go up, it will cost you more each month to live in the very same home. If you would want to keep your monthly payments about the same you will have to purchase a lower priced home.   
To get the most value for your money, it may be the best t ...

Read More


  kalamazoo real estate, veenstra team, evenboer walton realtors, interest rates and price of house, how does interest affect price of house, how does interest rate affect mortgage payment

Veenstra Team powered by eXp Realty
Serving Greater Kalamazoo
101 W. Big Beaver Rd. Ste 1400
Troy, MI 48084
269-350-5514

Copyright 2019 MichRIC, LLC. All rights reserved.
Information is provided exclusively for consumers’ personal use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS.
Copyright 2019 MichRIC, LLC. All rights reserved.