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Rates Rising-How does this affect your purchasing power?

Rates Rising-How does this affect your purchasing power?

As most of you have seen interest rates are going up.  What does this mean for you if you are looking to purchase a home?  How does this affect your purchase price and qualifications?

On average the rates have went up about 1% (FHA, VA, Conventional), which means that your purchase power went down about 10%.

What does that mean?

It means that the purchase price you have been looking at, now will need to go down by 10% in order for you to be in the same monthly payment you where budgeting for.  So if you were looking for a 200K home, now you would be wanting to look at $180K purchase price in order to have the same monthly payment unless you are able to qualify for the increased monthly payment.  Now, this may not affect your ability to qualify for the same priced home as you want, but make sure you talk through with your lender.

“Clear as mud”?

Want to know how this effect you?  Contact us.  Click here for secure online loan application.

~Ray Williams

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Licensed in Colorado as Maestro LLC (DBA Mortgage Maestro Group) is an Equal Housing Lender.

387 N Corona St #646, Denver, CO 80218.

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Consumers wishing to file a complaint against a company or a residential Mortgage loan originator should complete and send a complaint form to the Texas department of savings and mortgage lending, 2601 North Lamar, suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the Department’s website at www.sml.texas.gov. A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.sml.texas.gov.

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