Woulda, Coulda, Shoulda,

Buying a home in Napa is a big decision. Your family dynamics will undoubtedly dictate the right time to purchase a home. However, it’s important to consider this when you are planning.

Let’s imagine that a property appreciates about 12%; for example, the price of $350,000 goes up to $400,000.

 

Loan Amount of $350,000 at 3.5% at 4.0% at 4.5%

Monthly P & I payment $1571 $1670 $1773

Loan Amount of $400,000

Monthly P & I payment $1776 $1909 $2026

With the rates that prevailed at the end of 2013, a home mortgage payment would be $455 more a month with a rise of 1 % in the mortgage rate for a $400,000 mortgage. In short, keeping your eye on mortgage interest rates rising is as important as being concerned about the rise in home prices.