When you compare interest rates vs purchase price, you can see which one has a bigger effect on what you pay for a home.
Did you know that waiting to buy a home could cost you BIG?! 💰 Example, a Buyer pays $415,000 for a home listed for sale at $400,000. That extra $15,000 costs the Buyer an additional $40/mo. When interest rates rise you can pay an extra $100/mo at $400,000 (a lower purchase price)! Don’t forget about factoring Interest Rates in your home buying decisions 🏡
Interest Rates vs Purchase Price and Your Payment
Your monthly payment depends on both the price and the rate. A lower price reduces your loan amount and taxes, while a lower rate reduces the interest you pay every month for the life of the loan. Even a one percent change in rate can move a payment by hundreds of dollars.
The price is locked in forever, but a rate can often be improved later through a refinance. That is why some buyers choose to buy when prices are favorable, then refinance if rates drop. Rate buydowns and seller credits are other tools worth discussing with your lender.
Want to run the numbers on a specific home? See my buyer resources and get pre-qualified.
