Buying a home

Lower interest rates can mean more buying power.

Your interest rate may affect your home purchase.

Your interest rate may affect your home purchase.

While interest rates should not be the only consideration when buying a home, an
interest rate can have a significant impact on the loan amount for which a buyer can
be approved. Consider the following examples:

Example 1:

Mortgage Loan Amount

30 Year Fixed Interest Rate (APR)

Monthly Principal & Interest Payment
$200,000 5.00% (5.070% APR) $1,074.24
$225,000 4.00% (4.058% APR) $1,074.90

In this scenario — for a very similar monthly principal & interest payment —
a 4.00% interest rate yields a difference in buying power of $25,000!

Example 2:

Mortgage Loan Amount

30 Year Fixed Interest Rate (APR)

Monthly Principal & Interest Payment
$400,000 5.00% (5.035% APR) $2,147.89
$450,000 4.00% (4.029% APR) $2,149.09

In this scenario — for a very similar monthly principal & interest payment —
a 4.00% interest rate yields a difference in buying power of $50,000!

When purchasing a home, be sure to understand the costs in addition to your
principal and interest mortgage payment such as property taxes, insurance,
maintenance, repairs, and utilities.

To learn more about your home buying power, call/text/email Robyn Porter at 703-963-0142; robyn@robnporter.com. This has been a reblog from Prosperity Home Mortgage.
maintenance, repairs, and utilities.

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