Recently, Mortgage News Daily reported that the average 30-year mortgage exceeded the 7% mark. You can easily pay 7% interest (or off) over 30. Year fixed loan.
Can you afford a mortgage at 7%? Last year, it was possible to lock in a 30-year fixed mortgage at or around 3%.
Let's say you're buying a $300,000 home and have a 20% down payment. -- This is a good thing to do if you want to avoid the extra cost of private mortgage insurance
In that case, a 30-year mortgage at 7% would leave you with a monthly payment of $1,596 for principal and interest.
Keep in mind, though, that the $1,596 won't include homeowner expenses like property taxes and insurance, so you'll need to budget extra for those.
If you're buying a home that's part of a homeowner's association, you'll also need to factor in HOA fees on top of your principal and interest payments.