Interesting bit of info from my good friend and mortgage lender Mark Baker at Cardinal Financial... Did you know a 1% change in interest rate equals 10% LESS in buying power for the same payment? Example: 4.5% rate, for 30 years at $1,393 PITI = $275,000 Mortgage 5.5% rate, for 30 years at $1,393 PITI = $245,314 Mortgage (10.79%less) 6.5% rate, for 30 years at $1,393 PITI = $220,472 Mortgage (19.83% less) As interest rates increase, Buyer’s qualify for 10% LESS in Purchase Price for every 1% in rate. If you have a Buyer waiting for prices to "go back down", they might not understand the "Interest Rate Risk". Mark Baker "The Mortgage Maker" | NMLS ID 274071 Cardinal Financial Company, L.P. | NMLS ID 66247 (702) 451-1040 Office www.MarkABaker.com
