The High Impact of Low Interest Rates on Your Purchasing Power

The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.

Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain monthly housing budget.

The chart below shows what impact rising interest rates would have if you planned to purchase a home within the national median price range, and planned to keep your principal and interest payments between $1,850-$1,900 a month.

If you are looking to buy a house click here and let Ocean Atlantic Sotheby’s International Realty help you find the home of your dreams.  

*This article is presented to you by Waterstone Mortgage. Please click here to read full article.