The document discusses the impact of increasing interest rates on mortgage payments, indicating that average 30-year fixed mortgage rates are unlikely to return to low levels seen in 2012. It provides projections for mortgage rates and corresponding payments for various loan amounts through 2015, highlighting significant differences in monthly payments compared to previous decades. Additionally, the document offers a breakdown of how changes in interest rates affect buyers' purchasing power and invites readers to reach out for further discussion.

1. Impact of Increasing
INTEREST
RATES

2. "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

3. 1/2013 4/2014
Freddie Mac
Projected Rates
April 2014 – 2015 4Q
Mortgage.LHFS.com/NickPurchio

4. 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

5. Date Mortgage
Interest
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

6. 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% $997
The 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
Mortgage.LHFS.com/NickPurchio

7. 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 PowerRATE
Principal and Interest Payments
rounded to the nearest dollar amount.
Mortgage.LHFS.com/NickPurchio

8. 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%
RATE
Principal and Interest Payments
rounded to the nearest dollar amount.
Buyer’s Purchasing Power
Mortgage.LHFS.com/NickPurchio

9. 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%
RATE
Principal and Interest Payments
rounded to the nearest dollar amount.
Buyer’s Purchasing Power
Mortgage.LHFS.com/NickPurchio

10. 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%
RATE
Principal and Interest Payments
rounded to the nearest dollar amount.
Buyer’s Purchasing Power
Mortgage.LHFS.com/NickPurchio

11. 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%
RATE
Principal and Interest Payments
rounded to the nearest dollar amount.
Buyer’s Purchasing Power
Mortgage.LHFS.com/NickPurchio

12. CONTACT ME TO TALK MORE
Nick Purchio
Land Home Financial Services
Nick.Purchio@LHFS.com
Mortgage.LHFS.com/NickPurchio
925-708-8527
NMLS/CA-DBO #1098212
PurchioMortgageHouse.BlogSpot.com
I’m sure you have questions and concerns…
I would love to talk with you more about what you read here, and help you on the path to
buying a home. My contact information is below. I look forward to hearing from you…