With today's low interest rates, you may be able to afford more home than you think!

Don't just look at the sales price of the home - look at the monthly payments!

You may be able to afford more home than you think. Most people start out looking for their new home by thinking "I can afford a $200,000 home". But with today's fantastic interest rates, you may want to rethink that approach.

The better way to look at it is "I can afford to pay $1,500 per month."

Why take this approach? Well let's take a look at the impact of the different interest rates on the principal and interest payments for a $200,000 home with 5% down:

Interest Rate 5% 6% 7%
Loan amount on the purchase of a $200,000 home with 5% down $190,000 $190,000 $190,000
Monthly Principal and Interest payment $1,073 $1,199 $1,330 respectively.

Taxes and insurance still need to be added, but this gives you a rough idea of what the payments would be.

Now, taking a look at it from the Monthly Payment viewpoint. Suppose you can afford $1,500 a month for the base principal and interest payment:

That's a Big Difference! Over a $50,000 difference!

To find out just how far your dollar can go, you should contact a lender and get pre-qualified so that you are looking for homes in the right price range. If you would like to just get a rough estimate call or email us.

If we can be of any assistance in helping you locate a lender or the home of your dreams, just call us.