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Home Affordability Affected by Mortgage Rates

By
Real Estate Agent with Keller Williams Realty

Mortgage rates are rising in today’s housing market, and this affects how much a home buyer can afford to purchase. Likewise, your credit score and down payment have a similar affect.  All of the above items have a direct effect on how large a loan you can get.  When in the market to purchase a home, need to watch and understand how a rise in interest rates affects your monthly mortgage payments.  This can quickly move your payment from affordable to unaffordable. Depending on your financial situation you may want to consider discount points when talking to a lender.  Discount points will allow you to buy down your interest rate on your mortgage.  Over the long run discount points can save you money.  This works in conjunction with credit score.  A high credit score improves the probability of saving money over the life of the loan.  Your mortgage always includes principal and interest.  Depending on type of loan your mortgage payment may also include property taxes.

Comments (1)

Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information.   Thanks for sharing and enjoy your day!

Oct 14, 2022 07:07 AM