Mr. Sprague, thank you for this excellent piece. One nitpick if I may. In spotlighting the impact of an interest rate hike on purchasing power, I think you may have erred in your terminology. That is, you state that the difference of "three percent" means a difference in over $100,000 of property value. But don't you mean three percentage points, rather than three percent? In your example, the posited $1,499 payment would be a whopping 42.22 percent more than the $1,054, not three percent, barring any errors in my calculation.
Thanks, Jim! You are correct. It should be either three percentage points or perhaps more accurately three hundred basis points. Thanks for flagging that.
Mr. Sprague, thank you for this excellent piece. One nitpick if I may. In spotlighting the impact of an interest rate hike on purchasing power, I think you may have erred in your terminology. That is, you state that the difference of "three percent" means a difference in over $100,000 of property value. But don't you mean three percentage points, rather than three percent? In your example, the posited $1,499 payment would be a whopping 42.22 percent more than the $1,054, not three percent, barring any errors in my calculation.
Thanks, Jim! You are correct. It should be either three percentage points or perhaps more accurately three hundred basis points. Thanks for flagging that.