Recently, mortgage rates have been trending downward. How much does this change boost your purchasing power? When mortgage rates change, the monthly payment amount on a home loan is affected. Even a slight change in the rate can make a big difference in the monthly payment.
Take a look at the chart below to see how mortgage rates affect monthly payments for different loan amounts. For example, let’s assume you can afford to pay $2,600 per month on your mortgage. The green section of the chart shows the amount you can borrow based on various mortgage rates within this payment range.
Understanding how mortgage rates impact monthly payments can help you make better decisions.
This chart should give you a clearer idea of how much your purchasing power can increase. Think wisely and continue to build wealth through real estate transactions.
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