As interest rates increase for home buyers, not only does the monthly payment go up, but so does the amount of income needed to qualify to purchase a home. Check out this example to see how interest rates affect a buyer's bottom line. 

Interest Rate     Mortgage Payment     Minimum Qualifying Income 

3%                   $1,858                      $99,081

3.5%                $1,979                      $104,520

4%                   $2,104                      $109,522

4.5%                $2,233                      $114,683

5%                   $2,366                      $119,996

5.5%                $2,503                      $125,456

6%                   $2,643                      $131,056

6.5%                $2,786                      $136,790

Courtesy of Mike Patel,   

First Team Real Estate Christie’s International .   www.mikepatel.com

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