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Understanding the Real Impact of Mortgage Rates
When buyers think about affordability, they usually focus on interest rates. But the real story is how rates interact with home prices in specific areas.
To make this clear, let’s look at five popular North Atlanta markets — East Cobb, Sandy Springs, Roswell, Alpharetta, and Milton — and compare the monthly mortgage payments at three different interest rates: 5.5%, 6.27% (today’s average), and 7.5%, assuming a 4% down payment on a 30-year fixed loan.
Home Price and Loan Assumptions
- 30-year fixed mortgage
- 4% down payment (loan = 96% of purchase price)
- Principal & Interest only (no taxes, insurance, or HOA fees)
- Median home prices as of late 2025
| Area | Median Price | Loan Amount (96%) |
|---|---|---|
| East Cobb | $547,000 | $524,000 |
| Sandy Springs | $697,000 | $669,000 |
| Roswell | $680,000 | $653,000 |
| Alpharetta | $716,000 | $687,000 |
| Milton | $926,000 | $888,000 |
Monthly Principal & Interest Payments
| Area | 5.5% Rate (Low) | 6.27% (Current) | 7.5% Rate (High) | Change (Low → High) |
|---|---|---|---|---|
| East Cobb | $2,978 | $3,202 | $3,709 | +$731 |
| Sandy Springs | $3,802 | $4,086 | $4,732 | +$930 |
| Roswell | $3,708 | $3,982 | $4,613 | +$905 |
| Alpharetta | $3,900 | $4,188 | $4,850 | +$950 |
| Milton | $5,035 | $5,405 | $6,261 | +$1,226 |
(Rounded to nearest dollar. Principal and interest only.)
What These Numbers Mean
1. Small rate changes create large payment swings.
A move from 5.5% to 7.5% increases monthly payments by $700 to $1,200, depending on the price point. That’s a meaningful hit to any buyer’s monthly budget.
2. Price differences across cities matter even more.
Even with the same rate, a home in Milton costs nearly double what you’d pay in East Cobb each month, simply because of the higher home prices.
3. Rising rates shrink buying power fast.
At 5.5%, a $4,000 monthly budget can buy roughly a $700,000 home.
At 7.5%, that same payment only supports a $575,000 home—about a $125,000 reduction in affordability.
Neighborhood Insights
- East Cobb – Excellent schools and strong value relative to cost.
- Roswell & Alpharetta – Mid-range options balancing location, lifestyle, and resale strength.
- Milton – Premium market; higher rates have the largest dollar impact on luxury homes.
Key Takeaway
Mortgage rates and home prices both shape what buyers can afford. While you can’t control market rates, you can control timing, preparation, and understanding your payment range. Even a 1% rate swing can shift your payment by hundreds of dollars each month.
If you’d like a custom analysis for your neighborhood or price range, contact me — I’ll show you exactly how current rates translate into real monthly costs for your next move.
