If you’ve been house hunting for the past few years, you’ve really experienced it. Perhaps you were waiting for the market, hoping that the price spike would start to flatten out. Now, of course, they have – but between 2021 and 2022, mortgage rates have more than doubled, from less than 3% to more than 7%.
Calculating a 30-year fixed rate loan for a $600,000 home with a 10% down payment tells the story: At a 4% interest rate, the monthly payment would be $2,500. At 7%, the payout is $1,100 higher, at $3,600.
“Every buyer needs to do a gut check” on the price of the home they can afford now, advises Patrick Holland, vice president at Embrace Home Loans in Fairfax, Va. So, let’s get into some of the questions you might be asking yourself.
