Written by Robert H. Ruth
In last week’s post, I looked at the impact of waiting to buy a house when rates are rising, which is the situation we are experiencing at this point in time. As I explained, thus far in 2018, mortgage rates have risen about .75% to around 4.625% from the prevailing rate in December, which was 3.875%. I also looked at a scenario for first time buyers named John and Mary, who are attempting to purchase a $300,000 home with 10% down. Our analysis was predicated on the following assumptions …
- John and Mary earn a gross monthly income of $7325. The house they want to buy will require escrows of $ 400 monthly for taxes and homeowners insurance and a 90LTV loan requires PMI at $ 112 monthly.
- John and Mary’s monthly