If I pay $5,000 more for the house of my dreams, how much will it increase my Monthly Payment?

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We get this question all the time!

If I pay $5,000 more for the house, how much will my monthly payment go up?

Not as much as you might think! In general, estimate about $5 per $1,000 or $20 per $5,000 increase in the purchase price. Although it does differ slightly as interest rates fluctuate, this is the easiest way to estimate changes in your monthly payment.

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Here’s an example of how the increase in purchase price affects your monthly payment:

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This next chart whos the slight difference in monthly payment if interest rates were to rise to 3.5%:

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The bottom line is that the purchase price affects your monthly payment, but often not enough to lose your dream house over. the slight increase in monthly payments may be worth it!

 
Erica Roberts