History of Mortgage rates
Mortgage Calculators
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what is the effect if property values drop 10%, but rates increase by 1%”? Example: Loan Amount Rate Interest Only Payment $1,000,000 6.50% $5416 a month $900,000 7.50% $5625 a month Assuming a 10% decrease in property values results in a 10% decrease in the loan amount (from $1,000,000 to $900,000) and interest rates increase by 1% (from 6.5% to 7.5% for this example), the net effect would be an increase in your monthly payment!To see how market moves would effect your specific situation, please callCaroline McPherson (310) 260-8213 Office (310) 913-3198 Cell
Don't Forget PMI and Other Payments:
As you can see, your payment will vary depending on how much you will be borrowing, the interest rate, and the length of your loan. Other factors also need to be taken into consideration, such as your taxes, your insurance, and your PMI, all of which are included in your monthly house payment. Even the value of your home will affect your payment.
Just as an example, let’s say you are borrowing $250,000.00 for 30 years with an interest rate of 5.000%. If the value of your home is $300,000.00, your property taxes $3,000.00 per year and your insurance is $1,500.00 per year, you can expect to be making a total payment of $1,821.22. This is because you need to pay $1,342.05 toward the actual loan, plus $250.00 for real estate taxes and $125.00 toward insurance.
Since your loan to value ratio is 83.33%, you will also have to pay PMI for 31 months and this will tack on an extra $104.17 a month. Don't forget to drop the PMI when the 31 months is complete and you might save yourself some money each month, but remember, that, in most cases, you will need to finish re-appraisal process to do so.
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