July 13th, 2023 11:22 AM by Elizabeth Washburn
QUICK THOUGHTS WHILE QUALIFYING A BORROWER
I was running figures from someone considering a sales price of $425,000 and putting 5% down. Since we are early in the process and rates are trending upwards, I popped in a rate of 6%. The payment, with all the taxes, insurance and Private mortgage insurance, came in at $3130. I then replaced the 6% with a modest 3% rate. The payment went to $2412. That's $718 more per month for the same house as the interest rates rise. This should help decrease housing demand substantially. Its also a great time to buy so you get a lower debt long term and can refinance the rate in the next few years. Think of this as a 5 year commitment instead of a 30 year commitment.