Why the interest rate matters for your home purchase

Let’s suppose that you want to keep your mortgage payment around $1900 per month. With an interest rate of 5% you can qualify for a $360,000 home. However, if the interest rate is lower, at 4.25%, you can qualify for a home that’s $390,000. That’s $30,000 more home you can purchase for roughly the same monthly mortgage payment.

Big difference.

mortgage interest rate-payment chart

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