With 8% mortgage rates is it possible to Buy a $400,000 home?

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.

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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.

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The mortgage rates doubled after Covid outbreak in the USA and till October 20 the mortgage rates are increasing.

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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%.

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The above mentioned rate of interest is based on many factors or may have different depending on the credit score.

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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.

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In $3019 EMI they also include principal and interest, but insurance and taxes as well.

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According to the mortgage bank association, an expert in industry groups, the mortgage rate can be down to 6.1% in 2024.

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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.

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