What's your buying power?
One of the most frequent questions we get is: How much home can I afford to buy??
Check out the table below. On the left, you have the mortgage rates, and along the top you'll find a series of payments. Pick the payment you want to make, and go down to the loan rate--and you'll see what your purchase power is.
Example: you want to make payments of $2000. If your interest rate is 4.75%, you could afford a loan of up to $383,401--which is roughly a $395,000 house with 3% down. But if interest rates jumped just a point to 5.75%, your buying power is reduced significantly to $342,716.
The interest rate on your loan will vary from lender to lender, and different loans have different qualification requirements. Someone with an extremely high FICO score will probably get a better rate on their loan than someone with a lower credit score. How much money you're able to put down on a loan will also be a factor.
This is a great starting point to see what you can afford to buy!
We have some great mortgage partners that we can recommend to you for help on financing options.
If you have any questions at all, please give us a call or text or email. We can't wait to help you find a place that's perfect for you!
Graphic: Courtesy Ryan Ross, 1st Security Bank