Concerned About Rising Mortgage Rates?

An increase in mortgage rates and its impact on the housing market is seemingly a constant chatter. Now that the record setting low rates are in the rear view mirror, a new incoming president, and the Fed publicly sharing plans for 2017 increases, the white noise is getting a little louder.

Personally I don’t see mortgage rate increases having much of an impact on East Cobb buyers and sellers due the generally affluent demographics.

With that said, I ran some numbers today for those that have an interest in the actual data.  Please feel free to check these for yourself, and certainly contact a lender for loan program specifics, whether conventional or jumbo.

Assuming a 30 year fix rate mortgage and a goal to keep the monthly payment the same, an increase in the mortgage rate results in about half that amount in a lower purchase price. For example:

  • a 10% increase in the rate results in about a 4.75% lower purchase price
  • a 25% increase in the rate results in about a 11% lower purchase price

Assuming the same fixed rate mortgage, the monthly payment (principal and interest) increases similar to the previous scenario.


  • a 10% increase in the rate results in about a  4.9% higher P&I payment
  • a 25% increase in the rate results in about a 12.5% higher P&I payment

For those looking for a recommendation I can without hesitation suggest John Ragland of Supreme Lending at 770-335-6373. We refer business to John because he has not failed to thoroughly vet potential borrowers, fund transactions on time when clients have been approved, saved deals for our seller when buyers ran into last minute issues, and close quicker (by weeks in some cases) than most when necessary.

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