The difference one percent makes: how monthly payment changes with interest rate swings.
A home purchase price of $381,000, which is the median sale price in Florida for all property types as of July 2023, with a 20% down payment of $76,200 leaves a loan amount of $304,800.
At a 6% interest rate, the monthly payment for principal and interest only would be $1,827.
At a 7% interest rate, the monthly payment for principal and interest only would be $2,028.
The difference in the monthly payment would be $201 increase with the increase in interest rate by 1%.