If you’ve been house-hunting in recent years, you’ve really been through it. Maybe you were waiting out the market, hoping the rocketing prices would start to flatten. Now, of course, they have — but between 2021 and 2022, mortgage rates have more than doubled, from less than 3 percent to nearly 7 percent.
The math on a 30-year, fixed-rate loan for a $600,000 house with a 10 percent down payment tells the tale: At a 4.0 percent interest rate, the monthly payment would be $2,500. At 7.0 percent, the payment is $1,100 higher, at $3,600.
“Every buyer needs to do a gut check” on how much house they can afford now, advises Patrick Holland, vice president at Embrace Home Loans in Fairfax, Va. So let’s get into some of the questions you may be asking yourself.