How Do Interest Rates Affect My Buying Power?

Interest rates are one of the biggest factors in home affordability. A small rate change can significantly adjust what you qualify for — and what you feel comfortable paying.

For example, on a $500,000 loan:

• At 6%, your payment (P&I) is about $2,998/mo

• At 7%, it’s about $3,326/mo

Just 1% can cost you roughly $328 more per month, which can lower your approved purchase price by tens of thousands of dollars.

That’s why timing, loan structure, and negotiation matter. I help clients:

• Use seller credits to lower rates

• Explore buydowns

• Compare FHA vs. Conventional

• Understand future refinancing opportunities

When we shop for homes, we don’t just look at price — we look at payment. And that is where smart planning wins.