Mortgage rates soared big time in May. They rose almost a full 1/2 percent. While that might sound like a small fraction, it has big impact on monthly mortgage payments. Essentially houses become more expense as rates increase.
Mortgage Rates Soared and What’s it to You?
Here is how it hits you in the wallet:
- Every half of a percentage increase on a loan of $200,000- $400,000 equals $100-$150 more per month on a mortgage payment.
- Every half percentage on a loan of $400,000 + is $200-$250 per month more on a mortgage payment.
- If you are thinking of refinancing your current mortgage a good rule of thumb to use for deciding whether it is a savings, is to make sure the refi rate is a minimum of 1% lower than your current rate.
You can learn more about the rates and even calculate your very own comparison here. Will this upward trend in interest rates continue? No one can say for sure, but it is widely believed to be the case.