With 8% Mortgage Rates Is It Possible To Buy A $400,000 Home?
By Northlandblog.com | Oct 21, 2023
If you are planning to buy a home in the USA, you have to understand first that the 30-year mortgage is near to 8% and it becomes a tough time in real estate investment.
Let’s explore if it is possible to buy a $400,000 home with an 8% mortgage as mortgage rates go up day by day.
The mortgage rates doubled after Covid outbreak in the USA and till October 20 the mortgage rates are increasing.
As per the big real estate brokerage firm, if you are going to buy a home, for 30 years the rate varied between 7.63% or 8.03%.
The above mentioned rate of interest is based on many factors or may have different depending on the credit score.
As per the 8.03% mortgage rate, the home buyer will be paying for a house around $412.000 with a 30 year mortgage at 8% putting 20%, so the emi for the same will be per month around $3019.
In $3019 EMI they also include principal and interest, but insurance and taxes as well.
According to the mortgage bank association, an expert in industry groups, the mortgage rate can be down to 6.1% in 2024.
If you want to buy a home at an affordable price, you can choose a condo or townhouse as they are less cheap than a single family home.