Those thinking of buying a home may want to get that done as soon as possible. Rising home prices along with rising interest rates are the two factors that are creating this urgency.According to most recently published statistics for the Metro Denver real estate market, residential mortgage rates have risen by approximately 1% on a 30 year fixed loan in the last 12 months and homes have appreciated in value by approximately 12%.
This means that a buyer purchasing a $300,000 home 12 months ago, would be paying $336,000 for the same home today and the interest rate at closing would be 1% higher. The corresponding monthly payment will have increased by $146 per month, the buyer would have needed $7,200 extra in down payment and the additional amount of interest paid over the life of the loan is $73,535.
If the same trend continues, 12 months from now the same home will cost $376,320, the monthly payment will have increased $493 per month and the additional interest paid over the life of the loan will have increased to $166,342.
|* Based on 12% appreciation rate** Total interest paid over 30 years|
Colorado Home Realty (c)