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Jun
28
Interest Rates on the Rise?

Interest Rates on the Rise?

Interest Rates on the Rise?
Troy Champ, Jencor Mortgage, troy@jencormortgage.com

Fixed mortgage rates are on the rise! We have moved from a low 2.74% to 3.29%, an increase of 0.25% in just two weeks.

So what does this mean for homebuyers? For every 0.25% increase to mortgage rates, purchasers qualify for approximately $10,000 less on their purchasing price (assuming a purchase price of approximately $300,000.)

What this also means is that for a 0.25% increase on a $300,000 purchase price, the homebuyer will pay $736 more in interest each year for the same mortgage. That's a $3,679 difference over 5 year term.

That's nearly $3,700 that could be going back to pay off your mortgage! Our advice, get pre-approved at a lower interest rate now so you can shrink your mortgage balance as much and as quickly as possible. That's how you prepare for the adversity of higher interest rates.

 

 

Blog Topics: Auburn Bay, Calgary Homes, ZEN Condos, ZEN Living