Mortgage Payment and Rate Comparison

Lower interest rates can mean more buying power.  When purchasing a home, be sure to understand the costs in addition to your principal and interest mortgage payment such as property taxes, insurance, maintenance, repairs, and utilities.  Your local mortgage consultant can discuss how homeownership fits into youroverall financial goal and help you make a sound financial decision.  While interest rates should not be the only consideration when buying a home, aninterest rate can have a significant impact on the loan amount for which a buyer canbe approved.

Consider the following examples:

                               Mortgage Loan Amount

30 Year Fixed Interest Rate (APR)

Monthly Principal & Interest Payment

Example 1:

$200,000 5.00% (5.070% APR) $1,074.24

$225,000 4.00% (4.058% APR) $1,074.90

In this scenario — for a very similar monthly principal & interest payment —

a 4.00% interest rate yields a difference in buying power of $25,000!

Example 2:

$400,000 5.00% (5.035% APR) $2,147.89

$450,000 4.00% (4.029% APR) $2,149.09

In this scenario — for a very similar monthly principal & interest payment —

a 4.00% interest rate yields a difference in buying power of $50,000!