What can a 1% interest rate do to your Real Estate purchase power?
Thursday, January 14, 2010
Your Purchase Power in the East Bay is at an All-Time High!
Historically low rates mean you have tremendous buying Power. At a rate of 5.5% with 10% down, your monthly Mortgage Payment on a $500,000 home is approximately $2,555. If the rates go up by just 1% that same $2,555 payment will only get you a home worth $449,250. The end of the Federal Stimulus Funds in March predicts a rise in mortgage rates.
A Rate Increase of only 1% You Lose $50,750 in Purchase Power! 
