Then and now

Interest rates are up. Want to know what that means in real terms? I pulled rate sheets from June 1, 2017 and am comparing to today's rate sheet. Here are some rough ideas about what is real in today's market.

If you had financed a 30-year conventional loan last year for $424,000, you might have qualified at a 4.375% rate, making monthly principal and interest payments $2,116.97. Today that same scenario costs 5.25% at $2,341.34. Your monthly cost is up by $224.

On VA loans, a $2,005.83 principal and interest payment then (3.75%) is equivalent to a $2,292.09 payment now (4.875%). On a sales price of $424,000 with maximum financing, you're up $286 per month.

What used to cost $1,250.50 principal and interest per month for FHA (house cost $275,000 at 3.75% maximum financing) now runs $1,428.96 per month (now 4.875%), a $179 per month increase.

Of course, the usual disclaimers apply. The above scenarios are based on a perfect credit score and the appropriate loan qualifications being met. This is not any indication of what you may or may not be approved for today. APRs available on request.

Point being: Both prices and rates are on the rise. Have a conversation with your Mortgage Advisor now if you've been thinking about getting into the market. Having current data available will help you make the best purchase or refinance decisions for your family.

Tammy Engel is your local Mortgage Advisor. She's been working for your best interest since 1990, and can be reached at 661/822-7325 for your next purchase, refinance, and reverse mortgage. NMLS #235051 CaBRE #01273839