Interest Rates & Your Monthly Payment

"Did you know that a ½% change in interest is approximately equal to a 5% change in sales price?"

Buyers need to realize the importance of the relationship of interest rates to the monthly payments.
Change in Interest vs. Reduced Sales Price
Purchase Price
$200,000
Interest Rate
5%
Term
30
Payment
$1,073.64


½% Increase in Rate
$1,135.58
5% Increase in Price
$1,127.33
A ½% change in interest rates is approximately equal to 5% change in price

1% Increase in Rate
$1,199.10
10% Increase in Price
$1,181.01
A 1% change in interest rates is approximately equal to 10% change in price