How much difference in repayments will the interest rate rise actually have on average ?

Question

Just curious how much money this .25% rise will cost mortage payers and whether it is easily affordable or the last straw after all the other bills?

Answer 1

a .25% jump on $100,000 @ 6% to 6.25% will go from $1106.51 over 10 years to $1118.77 monthly and will cost you $1471.20 over the 10 year period.

Answer 2

It takes a long time before these things trickle down to the actual consumer. This would all depend on many economic and some unknown factors...like global terrorism as an example. It is a definite risk...but undefinable. Yet when it occurs it has a dramatic affect on market sentiment and ultimately starts sending people to the flight of safety...bonds and real estate.

The point is anything can happen and to determine what affect this will have on rates is pure speculation.

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