Interest Rates, and Why We Care

The interest rate on a loan can make a huge difference in the price of the home you can buy. This is how the Interest Rate affects your purchasing power with a monthly payment of $1200:

3.79% $257,849.22 (4/23/2012)  4.50%    $236,833.39  5.00%      $223,537.94  6.00% $200,149.94  7.00% $180,369.08  8.00% $163,540.19  9.00% $149,138.24 10.00% $136,740.98 11.00% $126,007.62 12.00% $116,661.10 So, if you are planning to purchase a home, it's a good idea to do so while the interest rates are low.