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Interest Rates Affect Your Affordability

By February 4, 2022 No Comments

Interest rates always affect your affordability, and rates are escalating.

How much home can you afford? The No. 1 thing that dictates your buying power is your interest rate. 

Back in 2006, you could get a $300,000 home loan at a 6% rate, and your mortgage would have been $1,800 per month. However, today you can get a $423,000 home at a 3% rate and pay $1,783 per month. That means you can currently buy more house and pay less money for it. 

Inflation is being discussed all around the world right now, and for real estate in the U.S., that means interest rates are increasing. Rates are rising, prices are rising, and inventory is tightening. However, it’s not cheaper to rent since rents are likely to increase with inflation. 

You can currently buy more house and pay less money for it.

So what should you do? Call us; we’ll take you to lunch or coffee, and we’ll discuss a game plan. The real estate market these days isn’t as scary as it sounds. Now is the time to buy; in a couple of years, you can brag that you got into a home when market conditions were ideal. 

We don’t want to pressure you; we want to talk to you and help you figure out what’s best for your family and situation. Give us a call or send an email if you’re interested in buying or have any questions. We look forward to hearing from you.

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