CHARLOTTE, N.C. — It's getting more expensive to borrow money for that dream house you've been eyeing, but it's not stopping people from buying homes. And it could have a major impact on your monthly mortgage payment.
Let's connect the dots.
This time a year ago, a 30-year mortgage rate was around 3.1%. This week, it sits over 5.7%. To fight inflation, the Federal Reserve raised rates three-quarters of a percentage point last month.
That means having debt is becoming more expensive. And Bankrate.com predicts mortgage rates will keep rising. The amount you pay will depend largely on the type of loan you choose.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.
For example, FHA loans have a minimum down payment requirement of 3.5% of the home's value. A conventional loan on the other hand typically requires a down payment of 5 to 20%.
If you can swing it, making a solid down payment can pay off in the long run. Your monthly payments will likely be lower and the interest rates you pay will be smaller.
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