The 30 Year Mortgage Hits a New High
Apparently the rates for mortgage loans (home loans) have hit a 4 year high, due to concerns over inflation and rising housing costs. If you’re in the market for a new home, this means somewhat bad news for you.
Let’s break that down a little :
Homeownders that utilize an adjustable rate mortgage, a rise in interest rates can mean a charp increase in their monthly mortgage payments.
Take for example, if you have a $200,000 home loan that goes up from 4 percent to 6 percent, the monthly bill would increase to about $1,200, from $955.
That’s over $200 per month! Most people do not allow this type of increase leway in their budget, so you can see how this might cause a problem for those with adjustable rate mortgages!
