Interest Rate Package

Impact of Increasing

INTEREST

RATES

"One thing seems certain: we are not likely to see average

30-year fixed mortgage rates return to the historic lows

experienced in 2012."

Freddie Mac

1/2013 4/2014

Freddie Mac

Projected Rates April 2014 – 2015 4Q

Mortgage.LHFS.com/NickPurchio

Date Mortgage Interest Rate* P&I**

Today $250,000 4.41 $1,253.38

End of 2015 $270,000 5.7 $1,567.08

*Average Commitment Rate per Freddie Mac **Principal and Interest Payment

$313.70Difference in Monthly Payment

Date MortgageInterest Rate*

P&I**

Today $250,000 4.41 $1,253.38

End of 2015 $270,000 5.7 $1,567.08

$313.70Difference in Monthly Payment

Monthly Annually Over 30 Years

$313.70 $3,764.40 $112,932

Decade Average Rate Payment

1970s 8.86% $1,589

1980s 12.7% $2,166

1990s 8.12% $1,484

2000s 6.29% $1,237

2014 YTD 4.36% $997The average 30-year fixed mortgage rates and the approximate payment for a $200,000 mortgage. Payments are principal & interest only, based on a $200,000 fully amortizing mortgage.All terms are assumed to be 30 years.

Freddie Mac 3/2014

Historic Mortgage Rates by Decade


6.00 $ 1,199 $ 1,169 $ 1,139 $ 1,109 $ 1,079

5.75 $ 1,167 $ 1,138 $ 1,109 $ 1,080 $ 1,050

5.50 $ 1,136 $ 1,107 $ 1,079 $ 1,050 $ 1,022

5.25 $ 1,104 $ 1,077 $ 1,049 $ 1,022 $ 994

5.00 $ 1,074 $ 1,047 $ 1,020 $ 993 $ 966

4.75 $ 1,043 $ 1,017 $ 991 $ 965 $ 939

4.50 $ 1,013 $ 988 $ 963 $ 937 $ 912

$ 200,000 $ 195,000 $ 190,000 $ 185,000 $ 180,000

-2.5% -5% -7.5% -10%

Buyer’s Purchasing PowerR

AT

E

Principal and Interest Payments rounded to the nearest dollar amount.


6.00 $ 2,398 $ 2,338 $ 2,278 $ 2,218 $ 2,158

5.75 $ 2,334 $ 2,276 $ 2,218 $ 2,160 $ 2,100

5.50 $ 2,272 $ 2,214 $ 2,158 $ 2,100 $ 2,044

5.25 $ 2,208 $ 2,154 $ 2,098 $ 2,044 $ 1,988

5.00 $ 2,148 $ 2,094 $ 2,040 $ 1,986 $ 1,932

4.75 $ 2,086 $ 2,034 $ 1,982 $ 1,930 $ 1,878

4.50 $ 2,026 $ 1,976 $ 1,926 $ 1,874 $ 1,824

$ 400,000 $ 390,000 $ 380,000 $ 370,000 $ 360,000

-2.5% -5% -7.5% -10%

RA

TE


Buyer’s Purchasing Power


6.00 $ 3,597 $ 3,507 $ 3,417 $ 3,328 $ 3,237

5.75 $ 3,501 $ 3,414 $ 3,326 $ 3,239 $ 3,151

5.50 $ 3,407 $ 3,322 $ 3,236 $ 3,151 $ 3,066

5.25 $ 3,313 $ 3,230 $ 3,148 $ 3,065 $ 2,982

5.00 $ 3,221 $ 3,140 $ 3,060 $ 2,979 $ 2,899

4.75 $ 3,130 $ 3,052 $ 2,973 $ 2,895 $ 2,817

4.50 $ 3,040 $ 2,964 $ 2,888 $ 2,812 $ 2,736

$ 600,000 $ 585,000 $ 570,000 $ 555,000 $ 540,000

-2.5% -5% -7.5% -10%

RA

TE




6.00 $ 4,796 $ 4,676 $ 4,557 $ 4,437 $ 4,317

5.75 $ 4,669 $ 4,552 $ 4,435 $ 4,318 $ 4,201

5.50 $ 4,542 $ 4,429 $ 4,315 $ 4,202 $ 4,088

5.25 $ 4,418 $ 4,307 $ 4,197 $ 4,086 $ 3,976

5.00 $ 4,295 $ 4,187 $ 4,080 $ 3,972 $ 3,865

4.75 $ 4,173 $ 4,069 $ 3,965 $ 3,860 $ 3,756

4.50 $ 4,053 $ 3,952 $ 3,851 $ 3,749 $ 3,648

$ 800,000 $ 780,000 $ 760,000 $ 740,000 $ 720,000

-2.5% -5% -7.5% -10%

RA

TE




6.00 $ 5,996 $ 5,846 $ 5,696 $ 5,546 $ 5,396

5.75 $ 5,836 $ 5,690 $ 5,544 $ 5,398 $ 5,252

5.50 $ 5,678 $ 5,536 $ 5,394 $ 5,252 $ 5,110

5.25 $ 5,522 $ 5,384 $ 5,246 $ 5,108 $ 4,970

5.00 $ 5,368 $ 5,234 $ 5,100 $ 4,966 $ 4,831

4.75 $ 5,216 $ 5,086 $ 4,956 $ 4,825 $ 4,695

4.50 $ 5,067 $ 4,940 $ 4,814 $ 4,687 $ 4,560

$ 1,000,000 $ 975,000 $ 950,000 $ 925,000 $ 900,000

-2.5% -5% -7.5% -10%

RA

TE




CONTACT ME TO TALK MORE

Nick Purchio

Land Home Financial Services

[email protected]


925-708-8527

NMLS/CA-DBO #1098212

PurchioMortgageHouse.BlogSpot.com

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Interest Rate Package

Economy & Finance

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