With a lot of experts predicting an increase in mortgage interest rates over the next year, home buyers or people that are thinking about waiting a while need to know the affect an increased interest rate will have on your monthly payment and the total amount you are going to pay for your mortgage.

Right now there are a lot of rates between 3.5% and 4.0%, but many are saying that it could be over 5.0% by this time next year. Here is a table that shows what that could mean for you. These calculations are all based on a $150,000 loan amount and I can do them for another loan amount if you request it.

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Basically, you will find that your monthly payment goes up about $20-$25 per .25% raise in your interest rate and the total amount you are going to pay goes up between $7,500 and $8,000 for each increment.

Hopefully this helps you understand what it means when you hear interest rates on are on the rise and you can be more prepared to make your home buying decision.