Will rising mortgage interest rates affect your mortgage qualification?

Will rising mortgage interest rates affect your mortgage qualificaiton?

It is very possible.

As rates go up, so too does the stress test rate that I have to use. The stress test is the greater of 5.25% or the contract rate + 2%.

For example, if you are wanting a fixed rate and the rate is 5%, then I have to use a payment that is equivalent to 7%. If the rate goes up to 5.5%, I now have to use a payment equivalent to 7.5%.

So BEFORE you go home shopping, be sure to find out your budget and qualification amount by reaching out to me or your lender!