Here is some great information put together by a local lender here in Grand Rapids that I recommend for my buyers and sellers. Kip Doezema, Asst. Vice President and Mortgage loan originator for Chemical Bank in Grand Rapids, has laid out some numbers that will get buyers out there buying a new home. This information will show you that, with rates going up, as they are now, that a rise in interest rates of 1% is the same as a 10% sale price increase. Please see below for further explanation:
Mortgage Numbers for a home in East Grand Rapids:

$250,000 home with 20% down:

Taxes = $5500/yr Insurance = $600/yr

$200,000 @ 5.0% (30 yr fixed) = $1073/mo + 458 + 50 = $1581/mo
$200,000 @ 6.0% (30 yr fixed) = $1199/mo + 458 + 50 = $1707/mo

$275,000 home with 20% down:
Taxes = $6000/yr Insurance = $660/yr

$220,000 @ 5.0% (30 yr fixed) = $1181/mo + 500 + 55 = $1736/mo

Kip Doezema AVP – Mortgage Lender
Chemical Bank – East Paris Branch
kip.doezema@chemicalbankmi.com
4024 Park East Ct. Suite A
Grand Rapids, MI 49546
T: 616.588.7516 / F: 616.588.6361/C: 616.889.0684

Here is a great article on msnbc.com about first time home buyers. If you are a first time home buyer in Grand Rapids and need some tips, take a look at this piece. This should help you with some of your questions. Click here:

Make sure that you take the time to shop for your home owners insurance the next time it comes up for renewal.