Why Mortgage Rates Matter
January 31, 2022
The interest rate directly affects how much of a mortgage a buyr can afford. For example: with a $3500 down payment at 3.25 % a buyer can borrow $708,500. A slight increase to 4.5% lowers that loan amounto to $693,000 resulting in a $15,500 drop in value. With this potential change a buyer qualified at 3.25% interest may no longer qualify for the original loan request of $708,500. So, if you are buying a home now, make sure your loan is actually locked.
