October 19th Interest Rate Update – Payment and Income Calculator

We discuss where we see mortgage interest rates today and we show you how to use our mortgage calculator tool to estimate your monthly payments, how much funds you need to close, and how much income we estimate you will need to qualify for the mortgage. This is an awesome calculator to use for homebuyers looking to get the information they need before purchasing a home.

I’m eddie canal and i’m tom cannell welcome everyone this is the mortgage brothers podcast show and today is october 19th and this is your interest rate update if you’re new to the channel be sure to subscribe comment and like and remember folks this is for informational purposes only we are not financial advisors are getting right into interest rates where they’re

At today we see the 30-year fix at 6.75 percent our last update was 6.375 the 15-year fix 6.125 yep in the 30-year fha 6.375 and the 30-year va 6.375 remember these quotes that we’re showing you are based off of these loan assumptions for conventional loans fha and va right here there’s no extra points no buy down costs no extra yeah and these aren’t super rare

Hypothetical scenarios so there’s a very really good chance that you’re going to fall into one of these buckets when you say who has 25 down people selling their homes would have 25 down and we have people upgrading downgrading those things so very likely scenarios all right and we want to show you a high level uh where interest rates have been since 1971 the

30-year fix and if we just look at this perspective you can see where on the fire very far right that steep cliff there that’s this is about march where march just came well yeah it actually was about uh february then to march and we just saw these rates just go up from that high twos and now we’re yeah 6.75 percent and basically we’re right where we were about

20 years ago on this chart incredible incredible we called this the interest rate slide it slid for so long and then look it took a pause about six months ago and started moving up yeah we see that the interest rates hit that high 1981 18.3 percent again we again for 36 years the market’s been going down in these rates we do not think that this is going to be

Sustained long term this is eventually the fed is trying to stop inflation put inflation back down into normal levels that three to two percent and right now the interest rates are on the rise to combat the inflation it’s the number one once we see inflation coming back down we should see these rates come back down as well when that will happen tom and i we really

Believe in about could be 24 months yeah for a shorter if someone would ask me what would you you know totally bet on right now i do think you know things happen much different than you always think so if you want to you know try and guess something it’s probably gonna be wrong so hopefully it’s sooner than that but that’s a possibility you know that it does take

24 months i personally that’s a really long time yeah i’m really committed to these ideas the idea that rates will be back into the fours and threes and even twos again and it won’t be that long i mean a couple years we’ll be back into low rates so the rates that we see today remember you can if you’re purchasing a house you can always refinance into these lower

Rates you know if rates do actually come back down yeah and we really yeah which we do believe and we really do believe it and it you know may sound self-serving but the reality is look how long we have had those low interest rates we will go back down because we’re solving a one-time issue which was that pandemic that we that we fell into a couple years ago once

That gets back under control i think we should go right back to where we were hey check out this awesome calculator that we created for you to use if you look in the description of this video you’re going to see a google sheet link you can click on that link then go to file make a copy and it’s and then it’s yours it’s yours so you’re out here yeah you’re looking

For homes you may have seen calculators but this is the calculator of all calculators i think it just has a little extra oomph it’s got it all in there it talks about payments and funds to close and income to qualify anything in yellow you can adjust so let’s go over a couple of those things estimate your estimate the interest rate it doesn’t have to be perfect if

You don’t know it you can just estimate your credit score put that in there the non-mortgage debt or monthly non-word payment student loans etc anything that you think would show up on your credit report because this calculator can calculate not only your payments and how much you you know uh the funds to close but it’ll also estimate what your income will need to

Be to qualify to qualify and this is a fantastic very thorough calculator so go through the sales price put any estimate your sales price the term of the loan taxes homeowners insurance hoa and i will jump in the closing costs and prepaid it’s really hard to figure out so either use whatever number we have in here or just call us and we can give you a good number

You can find out everything else it’s just those numbers are going to be hard put in the down payment options you want to look at then you’ll see this sheet it’ll give you the breakdown of everything from your payments the income needed to qualify cash to close and this is a grid format but you can also scroll down here and see these nice bar charts breaking down

Those payments yep and this payment is so good it actually has the hoa payment in there but the reality is it well the hoa payment will not be part of your mortgage so just know that that we are including in here so you can see your total budget but it would not be a part of your mortgage payment every month and then you can see your down payment options and how

Those income requirements look on this bar chart that’s right and if you don’t make this go to your employer and get a raise oh yes so be sure to take a look at that link make sure to make a copy for yourself and ask us if you if we can help you in any way all right thank you folks thanks for watching the mortgage brothers podcast if you have any questions email

Us at team azmortgagebrothers.com and if you like this content be sure to like comment and subscribe to the mortgage brothers team

Transcribed from video
October 19th Interest Rate Update – Payment and Income Calculator By The Mortgage Brothers Team